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With a short-term ascending trend-channel break, EURUSD seems more inclined towards testing 200-day SMA support level of 1.1110 mark soon. However, pair's further downside below 1.1110 might have to confront with 50% Fibonacci Retracement of its December 2015 – May 2016 upside, at 1.1070, and then to nine month old upward slanting TL mark of 1.1030. Given the pair drops below 1.1030, chances of its gradual declines towards 1.0980, 1.0950 and then to the 1.0900 mark become brighter. On the upside, 38.2% Fibo level around 1.1200 and the 1.1230 are likely immediate resistances that the pair traders should watch, breaking which 1.1325 and the 23.6% Fibo mark of 1.1360 can entertain short-term buyers. Should the pair manage to surpass 1.1360, it becomes capable enough to print 1.1430 on the chart.


USDJPY's break of month-old descending TL presently fuels the pair towards 102.50-70 resistance region, comprising 38.2% Fibonacci Retracement of its July – August decline. Though, overbought RSI and strong resistance area might confine the pair's additional upside beyond 102.70, which if broken can quickly trigger its rally to 103.10 and the 104.00 upside numbers. Alternatively, 101.80 can act as nearby support for the pair, clearing which 101.40-30 support-zone, including the 23.6% Fibo and the mentioned resistance-turned-support-line, becomes short-term important area to observe. If at all the pair drops below 101.30, 100.65-60 might offer intermediate halt to its decline towards present month lows around 99.55.


Considering "Rising-Wedge" confirmation on D1 chart of AUDUSD, the pair seems all set to decline towards 50% Fibonacci Retracement of it January – April rally, around 0.7325-30. However, 100-day SMA level of 0.7495, 38.2% Fibo level of 0.7450 and the 0.7400 round figure might offer intermediate halts to the pair. Given the pair continue declining below 0.7325, the 0.7255-60 region can hold its further downside. In case the pair bounces off from the present levels, 23.6% Fibo of 0.7600 and the 0.7640 can please the swing traders. During the pair's further advance beyond 0.7640, 0.7690 and the 0.7730 are likely consecutive upside figures to watch before the pair can challenge the recent highs of 0.7755.


Even if the short-term ascending trend-channel indicates USDCAD upside, the channel resistance-line of 1.3065, followed by a month-old descending TL mark of 1.3080, together with overbought RSI, might limit the pair's further advances. If the pair surpasses 1.3080, it can quickly rise to 1.3130-35 and the 1.3180-85, which if broken can propel its northward trajectory towards 1.3250 resistance. Meanwhile, the 1.3000 psychological magnet can offer immediate rest to the pair during the pullback, breaking which 50% Fibonacci Retracement of its June – July rally, at 1.2960 and the 1.2935 are likely following supports to flash before the channel support and 61.8% Fibo level of 1.2895 restricts its further declines. Should the pair fails to respect 1.2895, it can extend the south-run to 1.2830 and the 1.2760 support levels.

Cheers and Safe Trading,

Anil Panchal

Source: https://www.mtrading.com/analytics/technical-analysis/technical-overview-eurusd-usdjpy-audusd-and-usdcad
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