Five-week old “Rising-Wedge” is again at test with the USDCAD’s latest dip beneath the formation support. If the pair sustains recent breakdown, it confirms the bearish chart pattern that theoretically signal its plunge to 1.2770, which is below October lows. However, the 1.3000 and the 1.2930-25 could offer immediate supports to the pair prior to fetching it to the 1.2885-80 horizontal rest-zone. In case prices continue declining past-1.2880, the 1.2840 & 1.2800 are likely buffers that may be availed ahead of visiting the aforesaid 1.2770 mark. Meanwhile, an uptick beyond 1.3070 support-turned-resistance can put the Bearish formation on hold and push the quote towards 1.3110 & 1.3150 barriers to north before making it confront the 1.3170 resistance-line. Assuming the pair’s successful rise above 1.3170, the 1.3200, the 1.3225 and the 1.3290 might entertain the Bulls.
Unlike USDCAD, the EURCAD still struggles with 1.4950-40 area, breaking which it can surge to the 1.5000 round-figure but a downward slanting TL, at 1.5015 may limit the pair’s further advances. Given the pair’s ability to surpass the 1.5015 hurdle, the 1.5050 & the 1.5090 can act as intermediate halts during its rally to 1.5130-35 horizontal-region. Alternatively, the 1.4900 and an ascending trend-line, at 1.4865, might confine the pair’s short-term downturn, which if broken highlights the importance of 1.4840 support-level. Should sellers refrain to respect the 1.4840 mark, the 1.4800 & the 1.4750 could flash in their radars to target.
Having clearly breached the 50-day SMA & descending trend-line confluence around 0.9325-20, the AUDCAD is expected to aim at 100-day SMA level of 0.9510. If at all the pair continue being favorite to buyers after 0.9510, the 0.9550, the 0.9590 and the 200-day SMA level of 0.9680 could be their next bets. On the downside, the 0.9365 seem nearby support for the pair prior to retesting the 0.9325-20 support-confluence. It should also be noted that the pair’s D1 close below 0.9320 may again highlight the 0.9290, the 0.9220 and the 0.9190 for Bears to observe.
This article was originally posted on FX Empire
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