Important CAD Pairs’ Technical Outlook: 16.03.2017

USD/CAD

Although FOMC’s disappointment and negative US crude inventory figure dragged USDCAD towards testing a fortnight low, the pair failed to offer a daily closing below 100-day SMA level and is presently witnessing bounce from the same 1.3295 support. The 1.3350 might become immediate resistance for pair traders to watch at the moment, breaking which 1.3380 and 1.3430 should be given consideration before looking at 1.3500 and 1.3540 north-side numbers. However, 1.3585 – 1.3600 horizontal-region can become difficult for the quote to surpass during its up-move beyond 1.3540, which if broken enables it to aim for 61.8% FE level of 1.3670. Alternatively, pair’s daily closing below 1.3295 SMA mark could further extend its latest drop towards 1.3210 and then to 1.3170-65 support-confluence, comprising 200-day SMA & 38.2% Fibonacci Retracement of its May – December advances. Given the pair continue declining below 1.3165, the 1.3120 and 1.3060 can act as buffers before reigniting importance of nine-month old ascending TL and 50% Fibo area of 1.3030-25.

EUR/CAD

Following its failure to provide a daily break above 1.4375-85 horizontal-line, the EURCAD has been declining towards revisiting 100-day SMA figure of 1.4165; though, 1.4200 may offer nearby support. If the pair manages to sustain its south-run below 1.4165, the 1.4100 and 1.4030 are likely following rests to grab bears attention before targeting sub-1.4000 area. On the upside, 1.4330 and the 200-day SMA figure of 1.4355 can keep restricting the pair’s near-term advances, breaking which 1.4375-85 again comes into play. Should prices close beyond 1.4385 on daily chart, more than a year-long descending trend-line, at 1.4440, becomes crucial, surpassing which could wake the pair Bulls looking for 1.4600 round figure.

AUD/CAD

Even if the AUDCAD couldn’t extend its up-move beyond early-month high during Wednesday, a near-term ascending trend-line continues favoring its north-run. Currently, the pair seems heading to confront 1.0250 resistance, which can open doors for its rise towards 1.0265 but another upward slanting trend-line, at 1.0320, might limit its following rally. Given the quote surpasses 1.0320, the 100% FE level of 1.0350 and the November 2016 high around 1.0400 should be watched carefully. Meanwhile, 1.0200 and the 1.0170 trend-line support gains high priority if the pair reverses from present levels. If the 1.0170 is broken 1.0120 and the 1.0100 can quickly be flashed on the chart.

CAD/JPY

With the 84.80-75 horizontal-line repeatedly restricting the CADJPY’s downside, chances of its up-move towards challenging immediate descending TL resistance of 85.50 are higher. If the pair manages to clear 85.50, the 85.80 & 86.20 can become buyers’ favorite. Moreover, successful break of 86.20 may help Bulls to inflate the prices towards 86.60, 86.75 and the 87.00 consecutive resistances. Given the quote’s U-turn and a break below 84.75, it can quickly drop to 84.60, 84.15 and then to the 84.00 round figure. Should the pair keep trading southwards after breaking 84.00, 61.8% FE level of 83.55 and the 83.15 are likely rests that it could avail.

Cheers and Safe Trading,
Anil Panchal