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Technical Overview of EUR/USD, GBP/USD, USD/JPY & USD/CAD: 10.04.2018

Anil Panchal


Even after bouncing off the 1.2220-10 horizontal-region, the EURUSD’s upside seems being challenged by the 50-day SMA & support-turned-resistance line around 1.2325-35 area, which if broken could further escalate the pair’s recovery towards 1.2380 and then to the 1.2440-50 zone. If at all buyers manage to surpass the 1.2450 on a daily closing basis, the 1.2510 and the 1.2555 can act as intermediate halts ahead of fueling prices to 61.8% FE level of 1.2675. On the contrary, the 1.2280 might offer immediate support to the pair ahead of highlighting the 1.2220-10 region, breaking which 100-day SMA level of 1.2160 could play its role. Given the quote’s additional declines beneath the 1.2160, the 1.2085 and the 1.2000 round-figure may reappear as levels.


Notwithstanding the GBPUSD’s present trading near a fortnight high, overbought RSI & nearness to 1.4190-95 resistance-zone signal brighter chances for the pair’s pullback targeting 1.4120 and the 1.4090 supports; though, the 1.4010 and the 1.3985-80 could confine its following downside. In case sellers refrain to respect the 1.3980 mark, the 1.3930 and the 1.3910 may become their favorite numbers. Meanwhile, an upside break of 1.4195 could propel the pair to 1.4220 and the 1.4245 while the 1.4295–1.4300 area, comprising 61.8% FE level, may limit its subsequent rise. It should also be noted that pair’s successful trading beyond 1.4300 could help it question the January high of 1.4345 and aim for 1.4410.


USDJPY’s inability to sustain 50-day SMA break isn’t a case of concern for buyers unless the pair drops beneath resistance-turned-support line number of 106.35 on a daily closing basis, which in-turn could drag it to the 105.90 and the 105.30 supports. Should JPY strength continue fetching the pair southwards after 105.30, the 104.60 and the 61.8% FE level of 103.80 may again market attention.  Alternatively, the 107.50 and the 107.90 are likely nearby resistances for the pair to tackle in order to revisit the 108.45-50 block. Moreover, the pair’s north-run past 108.50 could please the optimists with 109.00 prior to challenging them by 100-day SMA level of 109.45.


USDCAD is yet to close below 100-day SMA level of 1.2690 if it is to revisit the 200-day SMA level of 1.2635, adjacent to the 1.2620-25 horizontal-line. Given the increased selling pressure after 1.2625, the 1.2585, the 1.2550 and the 1.2500 may entertain the traders. In case the pair closes above 1.2690, the 1.2760 and the 1.2810 can print their presence on the chart before highlighting the 1.2840 TL. Also, pair’s ability to conquer the 1.2840 may take a halt around 1.2860 before rising towards 1.2915-20, the 1.2960 and then to the 1.3000 psychological-magnet.

Cheers and Safe Trading,
Anil Panchal

This article was originally posted on FX Empire