Having bounced off the 1.1535-25 support-zone, EURUSD needs to surpass the 50-day SMA level of 1.1605, followed by the 1.1645 hurdle, comprising 100-day SMA, in order to justify its strength in targeting the 1.1720 and the 1.1750 resistance-levels. However, the 1.1815-20 region could limit the pair’s upside past-1.1750, if not then 1.1900 and the 200-day SMA level of 1.1940 might please the buyers. Alternatively, a D1 close beneath the 1.1525 can quickly fetch the quote to 1.1430 and 1.1330 supports. Also, pair’s sustained decline below 1.1330 can avail 1.1300 as an intermediate halt before looking at the 61.8% FE level of 1.1120.
Even after taking a U-turn from seven-week old ascending TL, the GBPUSD may find it hard to extend recent recovery as an immediate downward slanting trend-line, at 1.3060, could challenge the optimists. In case prices rise beyond 1.3060, the 1.3100 and the 1.3155-60 might entertain Bulls ahead of questioning their strength by the 1.3210-15 and the 1.3300 resistances. Meanwhile, pair’s dip below 1.2945 support-line can highlight the 1.2870 and the 1.2800 numbers as likely appearing on the chart. Assuming the pair’s extended downturn after 1.2800, the 1.2785, the 1.2685 and the 1.2660 may flash in the sellers’ radar.
USDCAD’s refrain to drop post-1.2780 can’t be considered as a sign of its strength as not only 200-day SMA level of 1.2870 but the 1.2880-85 area also stand tall to restrict the pair’s near-term advances. Given the pair’s ability to conquer the 1.2885 barrier on a daily closing basis, the 1.2950, the 1.2980 and the 1.3000 can act as buffers ahead of diverting market attention to the 100-day SMA level of 1.3055. On the downside, the 1.2750-40 support-area can confine the pair’s decline below 1.2780, breaking which 1.2670 and 1.2620 may play their role as important supports. It should also be noted that the pair’s south-run beneath 1.2620 can aim for 1.2525 re-test.
With the oversold RSI & support-line of descending trend-channel likely to trigger the NZDUSD’s short-covering moves, the 0.6600 and the channel-resistance mark of 0.6620 indicate comeback. If the pair defies channel formation by rallying above 0.6620, the 0.6660, the 0.6700 and the 0.6720-25 should be watched closely while holding long positions. In case bears continue ruling the momentum, the 0.6540-35 and the 0.6500 could become their favorites prior to emphasizing on 61.8% FE level of 0.6480. Let’s say the 0.6480 fall short of holding the pair, then the 0.6450 & the 0.6415 seem crucial to observe.
This article was originally posted on FX Empire
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