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EUR/GBP, EUR/AUD, EUR/CAD and EUR/CHF: Technical Outlook

By:
Anil Panchal

EUR/GBP Sustained break of 0.7200 mark magnified the EURGBP’s weakness that pulled it back from 0.7445-50 important resistance-zone; however,

EUR/GBP, EUR/AUD, EUR/CAD and EUR/CHF: Technical Outlook

EUR/GBP

EUR/GBP, EUR/AUD, EUR/CAD and EUR/CHF: Technical Outlook
EUR/GBP, EUR/AUD, EUR/CAD and EUR/CHF: Technical Outlook
Sustained break of 0.7200 mark magnified the EURGBP’s weakness that pulled it back from 0.7445-50 important resistance-zone; however, short-covering moves from 0.6980 seems favoring the pair’s test to 0.7130 immediate resistance. Though, ability to surpass 0.7130 can be challenged by the 100-day SMA and the 23.6% Fibonacci Retracement of its November 2014 – July 2015 decline, near 0.7200 level, breaking which the pair can rally towards 0.7300 and the 0.7360 resistances before it could aim for 0.7445-50 horizontal resistance area. On the downside, 0.7020 and the 0.6980 are likely nearby supports for the pair traders to watch, clearing which July lows, around 0.6930, may become a strong support to restrict the pair’s further south-run. Should the pair closes below 0.6930, it becomes vulnerable to plunge towards testing 61.8% FE of the said downside, near 0.6800 round figure mark, with 0.6850 being intermediate support level.

EUR/AUD

euraud
Even if the EURAUD dipped below 1.4800 on a closing basis during early weekdays, comprising of 200-day SMA and 61.8% Fibonacci Retracement of its April – August advance, short-term descending trend-channel support, around 1.4600 psychological level, can trigger the pair’s pullback towards re-testing the same important resistance. Should the pair manage to surpass 1.4800, it could quickly rise to 1.4910-20 resistance-zone prior to targeting 1.5000 round figure mark. On a further advance above 1.5000, the 1.5130, as indicated by the 50% Fibo, and the mentioned channel resistance around 1.5230 are important upside levels that could limit the pair’s rise. Meanwhile, a daily close below 1.4600 can open the door for pair’s extended downside towards 1.4450-40 and the 76.4% Fibo, near 1.4360, breaking which chances of further decline by the pair towards 1.4170 and to the 1.4000 level can’t be denied.

EUR/CAD

eurcad
Ever since the EURCAD reversed from 1.5150, it kept following short-term descending trend-channel which made the pair break 100-day SMA during late last month and is currently portraying it’s decline to 200-day SMA, around 1.4100 mark. However, on a further downside below 200-day SMA, the pair may find it difficult to break 1.4000 psychological magnet that also comprises mentioned channel’s support and 61.8% Fibonacci Retracement of its April – August rally. Given the pair’s inability to bounce back from 1.4000 and close below the same, it becomes vulnerable enough to plunge towards 1.3800 – 1.3780 multiple support area before aiming the 76.4% Fibo, near 1.3620 mark. Alternatively, pullbacks from the critical SMA level may witness 1.4285 – 1.4300 as immediate resistance, including 50% Fibo, breaking which 1.4380 may limit the pair’s further upside. Should it manage to clear 1.4380, the pair becomes capable enough to target 1.4570 – 1.4600 important resistance-zone, which encompasses channel resistance, 100-day SMA and 38.2% Fibonacci Retracement Level of the pair’s said advance.

EUR/CHF

eurchf
Although bounce from the short-term descending trend-channel support fueled EURCHF towards three week’s high during last week, the mentioned channel’s resistance, around 1.0900 round figure mark, limited the pair’s upside and is currently pulling it back to 100-day SMA, near 1.0800. If the pair closes below 1.0800, 38.2% Fibonacci Retracement of its April – September rally, around 1.0735, and the channel support, now at 1.0700, can become strong downside supports. Moreover, pair’s extended declines following 1.0700 break are likely to be limited by the 200-day SMA and 50% Fibo, near 1.0640-35 area. On the upside, 23.6% Fibo of the said move, near 1.0855, and the channel resistance, near 1.0900, could limit the pair’s near-term advance. Should the pair manage to clear 1.0900 on a closing basis, it can witness 1.0950 and the 1.1000 intermediate resistances before looking at September highs around 1.1050.

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About the Author

An MBA (Finance) degree holder with more than five years of experience in tracking the global Forex market. His expertise lies in fundamental analysis but he does not give up on technical aspects in order to identify profitable trade opportunities.

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