Although short-term descending trend-line signals further downside of the EURUSD, oversold RSI & 1.1430-25 support-zone could trigger the pair’s pullback. Given the sellers refrain to respect the 1.1425 mark, the 1.1390 & the 1.1350 may offer intermediate halts during the pair’s drop towards 1.1300 round-figure. Even if the pair manages to conquer aforementioned TL figure of 1.1515, it still needs to surpass the 1.1525-30 region in order to aim for 1.1615 and the 1.1650. It should also be noted that the pair’s sustained trading beyond 1.1650 may find it hard to clear the 1.1715-20 barrier, if not then its rally to 1.1715 can’t be denied.
Failure to cross the 100-day SMA level on a daily closing basis seems dragging the GBPUSD in direction to 1.3000 rest-point but its following dips can be confined by the 1.2970-65 support-confluence, encompassing 50-day SMA & an upward slanting TL. If at all the pair continue declining past-1.2965, the 1.2920 and the 1.2800 could get market attention. Alternatively, a D1 close above 100-day SMA level of 1.3110 highlights the importance of the 1.3215 and the 1.3280 resistance-line. Additionally, pair’s successful rise above 1.3280 can help it target the 1.3440-45 and the 1.3500 level, including 200-day SMA.
Unless breaking the immediate resistance-line, at 113.60, USDJPY traders may continue emphasizing on the 113.00 & the 112.60 supports, breaking which 112.00 and 111.75-70 area might become highlights. In case Bears continue ruling trade sentiment beneath 111.70, the 111.10, the 110.65 and the 110.35 can play their roles. Meanwhile, break of 113.60 could quickly fuel prices to the 114.00 and the 114.55 resistance-levels. Moreover, buyers’ ability to extend the up-moves after 114.55 can avail 61.8% FE level of 115.00 as a buffer ahead of looking at the 115.30 and the 116.00 landmarks.
With the help of adjacent ascending trend-line, the USDCAD is again rising to challenge the 1.3000 resistance-line, breaking which 1.3015 and the 1.3040 can entertain optimists before troubling them with 1.3075-80 horizontal-hurdle. Should there be additional strength by the pair above 1.3080, the 1.3110, the 1.3165 and the 1.3225 are likely consecutive levels that may flash in Bulls’ radar. On the contrary, quote’s slip below 1.2950 support-line can fetch it to 1.2915 and then to the 1.2885-80 support-zone. Assuming the pair’s inability to reverse from 1.2880, the 1.2840, the 1.2780 and the 61.8% FE level of 1.2735 might be favorites for sellers.
This article was originally posted on FX Empire
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