Following its inability to sustain the U-turn from 100-day SMA, USDCAD re-tests the same SMA figure of 1.3040, breaking which 1.3000 and 1.2960 can offer intermediate halts during the pair’s drop to 1.2925 trend-line number. Should CAD optimists refrain to respect the 1.2925 mark, the quote could visit 200-day SMA level of 1.2860 and the 1.2800 rest-points. On the upside, 50-day SMA level of 1.3090 and 1.3110 may entertain short-term buyers before challenging them with 1.3180 resistance. Moreover, pair’s successful trading above 1.3180 might witness 1.3220 and the 1.3260-70 as strong barriers to north.
Not only reversal from 1.7160-70 but dip beneath the short-term ascending trend-line also highlights the importance of 1.6965-55 support-zone for GBPCAD traders. Given the pair continue declining past-1.6955, the 1.6840 and the 1.6750 might try disappointing the Bears, if not then 1.6660 and the 1.6590 could gain market attention. In case the pair witnesses short-covering from present levels, the 1.7090 is likely a buffer before shifting investors’ eyes back to 1.7160-70 area. Assuming that pair’s rally beyond 1.7160-70, the 1.7230 and the 1.7290-1.7300 can appear in the Bulls’ radar to target.
CADJPY again confronts the 200-day SMA level of 85.40, which if broken on a daily closing basis could propel prices to the 86.00 and to the 86.50 trend-line. If the quote keep marching north above 86.50, the 86.80 and the 87.10 might be aimed while holding long positions. Alternatively, 100-day SMA level of 84.80 may serve as nearby support for the pair if it gets defeated by the said SMA but the 83.80 and an upward slanting TL, at 83.50, could threaten the pessimists then after. It should also be noted that the pair’s D1 close below 83.50 can make it vulnerable enough to test 83.00 and the 82.40 levels.
While 0.7465 confines the CADCHF’s upside, the 0.7435, the 0.7410 and the 0.7395-90 may mark their presence on the chart. Though, pair’s extended south-run beneath 0.7390 opens the door for its fall to the 0.7355, the 0.7310 and then the 61.8% FE level of 0.7270. Meanwhile, pair’s rise above 0.7465 can have multiple resistances to break in order to justify its strength, namely 0.7480 TL, the 0.7515-20 horizontal-zone and the 0.7535 TL. Let’s say 0.7535 can’t restrict the pair’s advances then 0.7570 and the 0.7600 become crucial to watch.
This article was originally posted on FX Empire
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