Having breached 50-day SMA & near-term important TL, the USDCAD seems all set to challenge the 1.3265-70 horizontal-region but overbought RSI might question the pair’s further upside. Though, pair’s sustained rise beyond 1.3270 can help it aim for the 1.3330 and the 1.3385 resistances. Meanwhile, the 1.3160 could offer immediate support during the pair’s pullback before highlighting the resistance-turned-support confluence of 1.3100-3090. Given the sellers fetch prices beneath 1.3090 on a daily closing basis, the 1.3000, the 1.2910 and the 200-day SMA level of 1.2850 may gain market attention.
Even after taking a U-turn from resistance-line of short-term “Rising Wedge”, the EURCAD can’t be considered weak unless declining beneath the 1.5165 support-line. As a result, chances of the pair’s pullback to 1.5290 and consequent advances to 1.5320-25 horizontal-line can’t be denied. Should the pair crosses 1.5325 barrier, the 1.5370, the 1.5415 and the 1.5440 can entertain buyers prior to pleasing them with 1.5465 mark. On the downside, the 1.5185 and the 1.5165 may limit the pair’s nearby downside, break of which can confirm the bearish technical pattern with theoretical targets of 1.5050 and the 1.5010-5000. Moreover, pair’s weakness below 1.5000 might not hesitate testing the 1.4885, the 1.4830 and the 1.4800 rest-points.
GBPCAD’s bounce off the 1.6595-85 support-zone has to surpass the 50-day SMA level of 1.7035 in order to be capable of visiting the 1.7155 mark but its further upside might find it hard to conquer the 100-day SMA & five-month old descending TL, around 1.7240-50. Assuming that the quote closes beyond 1.7250 on a D1 basis, the 1.7465-70 may flash in the Bulls’ radar. In case prices fail to hold recent recovery, the 1.6800 can act as adjacent support for the pair, breaking which the 1.6750 and the 1.6585-75 could play their roles. It should also be noted that the pair’s drop below 1.6575 can make it vulnerable to plunge towards 1.6355-50 support-area.
With the five-week old descending trend-line restricting the NZDCAD’s immediate rise around 0.8660, the pair is likely to revisit the 0.8615 and the 0.8600-0.8595 support-region. Though, refrain to respect the 0.8595 can drag the quote to 0.8560 and then to the 61.8% FE level of 0.8495. Alternatively, a clear break of 0.8660 could escalate the pair’s recovery towards 0.8685 and the 0.8740 levels ahead of highlighting the 0.8775 and the 0.8825-30. If the pair continue trading north-wards after 0.8830 then the 0.8875 and the 0.8920 might become traders’ favorites.
This article was originally posted on FX Empire
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