While inability to break 1.2415-10 horizontal-region on a daily closing basis triggered the USDCAD’s pullback, 100-day SMA level of 1.2590 seems presently restricting the pair’s up-moves. Should the pair surpasses the 1.2590 cap, it can confront the 1.2660-65 area, which if broken could help the buyers to target 50-day SMA level of 1.2720. In case if the pair fails to rally beyond 1.2590 at Day’s close, chances of its drop to 1.2500 and then to the 1.2450 become brighter but the 1.2415-10 might limit the quote’s additional downside. Given the sellers manage to drag prices beneath 1.2410 on D1 close, the 1.2350 and the 1.2330 can entertain the Bears.
GBPCAD is another CAD pair which has recently reversed but is finding an SMA barrier to justify its strength. Herein, the 50-day SMA level of 1.6980 becomes an immediate cap for the pair to clear if it is to aim for six-week long descending trend-line resistance of 1.7040. Given the pair conquers the 1.7040 mark, it can rise to 1.7080 and then to the 1.7160 while 1.7290 and the December high of 1.7465 can entertain buyers then after. On the contrary, the 1.6880 and the 1.6770 may offer immediate supports to the pair, breaking which 100-day SMA level of 1.6710 comes into play. If prices continue declining below 1.6710, the 1.6600, the 1.6560 and the 1.6350 are likely important supports to watch.
Even after rising to more than two-month high, AUDCAD’s further advances are likely to be challenged by the 200-day SMA level of 0.9910, which is adjacent to the 0.9915-25 important resistance-zone. Hence, the pair has to surpass the 0.9925 resistance should it become eligible to meet the 0.9960 and the 1.0000 north-side numbers. Moreover, pair’s sustained trading above 1.0000 helps it aim for the 1.0035, the 1.0070 and the 1.0100 consecutive resistances. Alternatively, the 0.9830, the 0.9785 and the ascending TL figure of 0.9730 are likely nearby supports that the pair might revisit if it takes a U-turn from present levels. Assuming the pair’s break of 0.9730, the 0.9695 and the 0.9630 may act as buffers prior to fetching it to the December month lows around 0.9575.
With 88.50 offering much needed pullback to the CADJPY, the pair is likely to strengthen towards confronting the 89.30-35 horizontal-region, which if broken could further propel its recovery in direction to the 89.50, the 89.80 and then to the 90.00 resistances. Should the pair manage to surpass 90.00, the 90.50 and the 90.70 and the 91.00 could be targeted while being long. Meanwhile, pair’s dip below 88.50 can extend its downside to the 88.20 and to the 88.00 support-line. Given the pair continue declining after 88.00, it becomes vulnerable to plunge to 87.30 and the 86.70 mark but 87.60 can offer intermediate rest to the quote.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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