While receding political pressure at Germany helped the EURUSD witness its latest recovery, short-term symmetrical-triangle is likely to confine the pair’s immediate moves. As a result, the 1.1680 can become adjacent resistance for traders to watch, breaking which the 1.1725 may offer intermediate halt prior to fueling the quote towards two-month old descending TL, at 1.1775. In case if the pair continue rising after 1.1775, the 1.1825 and the 1.1850-55 horizontal-region could entertain the Bulls. On the contrary, the 1.1600 seems nearby support for the pair ahead of the formation’s lower-line, at 1.1570. Should sellers refrain to respect the 1.1570 rest-point, pair’s drop to 1.1510-05 and subsequent signal to test the 61.8% FE level of 1.1415 can be imminent.
Even if the 0.6690-70 horizontal-area triggered the NZDUSD’s U-turn, the pair can’t be termed strong unless it surpasses the support-turned-resistance of a longer-term ascending trend-channel, around 0.6840, on a weekly chart. Hence, the pair points to its south-run towards 0.6560 and the 0.6500 once it dips beneath the 0.6670 for one more time. Given the Bears keep fetching prices down past-0.6500, the 0.6460, the 0.6420 and the 0.6360 may appear in their radars to target. Assuming that the pair manages to conquer the 0.6840 upside barrier, then it can confront the descending TL, at 0.6960, breaking which 0.7000 and the 200-week SMA, at 0.7110 might please the buyers. Moreover, pair’s successful trading beyond 0.7110 enables it to challenge 0.7180 & 0.7270 resistance-levels.
USDCAD’s failure to sustain its bounce off the 1.3130 dragged the pair to same support re-test, breaking which six-week long upward slanting TL, at 1.3050, may gain market attention. If the pair stretches its downturn below 1.3050, the 1.2990 and the 1.2955 are likely numbers to appear as quotes. Meanwhile, the 1.3220 and the 1.3260-65 zone can restrict the pair’s near-term advances whereas 1.3300, the 1.3330 and the 1.3385 could entertain the optimists afterwards. Let’s say the CAD weakness propels the pair above 1.3385, in that case the 61.8% FE level of 1.3480 can be targeted if holding long positions.
With the ascending triangle pattern limiting the USDCHF’s moves between 0.9985-90 resistance & 0.9885 support, chances of witnessing any big moves are minimal unless the pair maintains the range. However, comparative strength of the USD favors the pair’s upside to 1.0020 and then to the 1.0055 on the break of 0.9990. Also, pair’s sustained trading post-1.0055 could help it look for 1.0170 land-mark, comprising 61.8% FE level. Alternatively, a D1 close below 0.9885 can quickly trigger the pair’s profit-booking wave aiming the 0.9820 and the 0.9785 while 200-day SMA level of 0.9735 may question it’s further declines. Additionally, 200-day SMA’s inability to hold the pair can open the door for its plunge in direction to the 0.9700 and the 0.9650 rest-points.
This article was originally posted on FX Empire
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