USD/CAD
With its another failure to surpass the 1.2910-20 horizontal-region, the USDCAD recently closed below 50-day SMA for the first-time in nearly three-months, which in-turn signals the pair’s further downside towards testing an upward slanting TL support of 1.2685. Should the quote refrains to respect the trend-line support by providing a daily close beneath 1.2685, the 1.2660 and the 100-day SMA level of 1.2600 might reappear on the chart. On the contrary, 50-day SMA level of 1.2755 is likely immediate resistance for the pair to clear if it is to aim for 1.2800 and the 1.2840 numbers. However, the 1.2910-20 area, adjacent to 200-day SMA level of 1.2925, might confine the pair’s following advances, failing to which could push buyers to target 61.8% FE level of 1.2985.
GBP/CAD
Unlike USDCAD, the GBPCAD has already cleared an important support-line stretched since September-start and is indicating brighter chances of its additional downturn to 50-day SMA level of 1.6925. Given the pair’s sustained break of 1.6925, the 1.6860, the 1.6790 and the 100-day SMA level of 1.6645 can please the sellers. In case if the pair closes above support-turned-resistance TL figure of 1.7055, it can again rise to the 1.7120, the 1.7200 and then to the 1.7260 consecutive resistances. During the pair’s extended north-run beyond 1.7260, the 1.7320 and the 1.7465 can become Bulls’ favorite.
CAD/CHF
CADCHF’s ability to conquer 50-day & 100-day SMA confluence need to justify its strength by breaking resistance-line of a fifteen-week old descending trend-channel, at 0.7785 now, which in-turn could help the pair to run towards 0.7820 & the 0.7875 resistances. If the pair successfully trades above 0.7875, the 0.7920 and the September high around 0.7960 may come-back as price-levels. Alternatively, a daily close below 0.7755-50 support-confluence can trigger the pair’s pullback to 0.7700 and 0.7670 while the 0.7630, the 0.7615 and the 0.7600 may act as consequent rests. Though, support-line of the mentioned channel and 200-day SMA, near 0.7575-70, might restrict the pair’s southward trajectory.
Cheers and Safe Trading,
Anil Panchal