Although immediate ascending trend-channel indicates further upside of the USDCAD, the pair presently struggles with the 1.2415-20 horizontal-region that confined its advances during early-month and hence, considering overbought RSI, chances of its pullback to 1.2360 and then to the 1.2300 round-figure become brighter. However, the channel-support of 1.2290 might limit the quote’s additional downside after 1.2300, failing to which 1.2240 and 1.2160 could reappear on the chart. On the contrary, pair’s break of 1.2420 needs to justify its strength by clearing the 1.2470-75 resistance-confluence, comprising descending TL and upper-line of the channel, which if broken could accelerate the present recovery towards 1.2530 and the 1.2600 resistances. In case if buyers dominate the sentiment after 1.2600, the 1.2650, the 1.2680 and the 1.2730 numbers may entertain them.
Following its failure to surpass 100-day SMA, the GBPCAD is likely declining in direction to 1.6430 and then the 1.6360-55 horizontal-line. Should sellers refrain to respect the 1.6355 support, the 1.6200, the 1.6080 and the 1.6000 psychological-mark could be their targets. Meanwhile, the 100-day SMA level of 1.6700 becomes an immediate important resistance for traders to watch, break of which could activate the pair’s rise to 1.6760, the 1.6840 and then to the 1.6930 consecutive levels. Given the Bulls’ ability to propel prices beyond 1.6930, the 1.7000 may offer an intermediate halt to the pair’s northward trajectory to 1.7160-70 horizontal-line.
AUDCAD’s present downturn signals its readiness to test the upward slanting trend-line support of 0.9685, breaking which support-line of the broader “Falling-Wedge” Bullish formation, at 0.9640, gains importance. If the pair closes below 0.9640, the January low of 0.9595, followed by the 0.9545, could mark their presence. Alternatively, 0.9770 and the 0.9850 are likely nearby resistances for the pair to clear during its pullback before aiming the 50-day SMA level of 0.9900 and the pattern resistance of 0.9935. In case of the pair’s confirmation to the bullish formation, by a daily closing above 0.9935, the 1.0040 and the 1.0075 may be expected as resistances.
With its bounce from 0.7795-90 horizontal-line, the CADCHF seems heading towards short-term descending trend-line figure of 0.7895, which if surpassed enables it to stretch the up-move to the 0.7915, 0.7935 and then to the recent high around 0.7960. Given the prices continue trading north beyond 0.7960, the 0.8000 round-figure and the 61.8% FE level of 0.8020 become wise to target. During its pullback, the 0.7830 can offer immediate rest to the pair ahead of dragging it to the 0.7795-90 support-area, which if broken could further weaken the quote to test 0.7750 and the 0.7720 levels. Moreover, pair’s sustained south-run below 0.7720 makes it vulnerable to test the 0.7690 and the 0.7645 supports.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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