Given the EURUSD’s recent U-turn from a month-old ascending trend-line support, the pair is likely heading back to 1.2430 and then to the 1.2480 immediate resistances; though, its following upside might be capped by the 1.2500 and the 1.2520 levels. Should prices refrain to respect the 1.2520 resistance, the January month high around 1.2540 can offer an intermediate halt during its rise to 61.8% FE level of 1.2600. On the downside, the 1.2360 seems nearby support for traders to watch, breaking which the pair can drop to 1.2300–1.2290 horizontal-line. If sellers continue dragging the pair downwards after clearing the 1.2290 mark, chances of its plunge to another ascending TL support of 1.2150 can’t be denied.
Alike EURUSD, the GBPUSD also bounced off an immediate support, which is 1.3945-35 horizontal-line in this case. As a result, the pair may challenge the 1.4020 TL resistance if it can sustain the latest recovery, which if broken could further escalate the quote’s up-moves to 1.4080 and then to the 1.4120 resistances. During the pair’s sustained trading beyond 1.4120, the 1.4200 and the 1.4240 are likely critical levels to observe. Meanwhile, break of 1.3935 can fetch the pair to 1.3840 and to the 1.3810 supports before pushing bears to target 1.3750 and the 1.3700 rest-points. Assuming the pair’s extended south-run below 1.3700, the 1.3610, the 1.3550 and the 1.3455 are expected figures to gain importance.
AUDUSD’s dip below more than seven-week long upward slanting trend-line indicates the pair’s further downturn towards testing 0.7800–0.7790 region, comprising 50-day SMA, breaking which 200-day SMA level of 0.7745 and the 0.7725-35 horizontal-line seem crucial for traders. If at all the pair closes below 0.7725, it becomes vulnerable to revisit the 0.7690 and the 0.7630 support-levels. Should the pair reverses form present levels and manage to surpass the 0.7900 mark on a D1 close, it can again rise in direction to the 0.7940, the 0.7980 and then to the 0.8000 mark. Moreover, pair’s successful trading above 0.8000 enables it to aim for 0.8040, the 0.8055 and the 0.8075 consecutive resistances.
Even after taking a U-turn from 1.2240-55 support-zone, the USDCAD is still left to conquer the 50-day & 100-day SMA confluence, near 1.2595–1.2600, which in-turn could help it stretch the latest surge towards 1.2650 and 1.2670 resistances. If the pair continues trading north after 1.2670, the 1.2730 and the 200-day SMA level of 1.2785 shouldn’t be missed while being long. Alternatively, the 1.2485 can offer nearby support to the pair, breaking which the 1.2435, the 1.2370 and the 1.2300 are likely intermediate halts that it can avail ahead of re-testing the 1.2255-40 rest-area. Given the sellers’ ability to drag the quote below 1.2240, the 1.2190, the 1.2165 and the 1.2100 may become their favorites.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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