Important CAD Pairs Technical Outlook

USDCAD

After rising to 1.3350 level, marking its highest level in over a decade, the pair witnessed some profit taking moves from higher levels. The pair is currently trading close the lower trend-line support of a short-term ascending trend-channel formation on 4-hourly chart. A decisive break below the lower trend-line support of the channel, currently near 1.3130-10 zone, now seems to open room for extension of the near-term corrective move towards its next important horizontal support near 1.2950 region with 1.3000 psychological mark acting as intermediate support. Alternatively, should the pair continue holding the trend-channel support and moves back above 1.3200 mark, it seems to make an attempt to retest 1.3280-1.3300 resistance. Further, on a sustained strength above 1.3300 mark the pair is more likely to surpass recent highs and aim towards testing the upper trend-line resistance of the channel, currently near 1.3440-50 area.

GBPCAD

The pair has clearly broken through a well-established ascending trend-channel held since early May this year and subsequently dropped below 23.6% Fib. retracement level support of its up-move from early May lows to recent highs. Hence, from current levels the pair seems more vulnerable to continue drifting lower, initially towards 2.0100 intermediate horizontal support and eventually towards testing 38.2% Fib. retracement level support near 1.9900 level. Meanwhile, a pull-back above 2.0300 mark now seems to confront immediate resistance near 2.0390-2.0400 level and any further strength above 2.0400 mark now seems to be capped at the trend-channel break-point, support turned resistance, near 2.0500 psychological mark. Only a follow-up strength above 2.0500 mark now seems to negate near-term bearish outlook for the pair.

AUDCAD

Following a break below an important support near 0.9400 horizontal area, the pair dropped to test 61.8% Fib. expansion level support near 0.9300 mark. Any bounce-back from 0.9300 support is now likely to face strong resistance at its previous strong support now turned resistance near 0.9400 mark. Further, strength above 0.9400 mark now seems to be short-lived and is more likely to be capped at 0.9500 mark. Meanwhile, weakness below 61.8% Fib. expansion level support near 0.9300 mark seems to immediately drag the pair towards testing sub-0.9200 mark support, level earlier tested in July-August 2013. The near-term downward trajectory is expected to continue even below 0.9200 support towards testing 100% Fib. expansion level support near 0.9000 important psychological mark.

EURCAD

The pair’s corrective move from 1.5550-60 resistance area, marking its highest level since Mar. 2014, seems to have found some intermediate support near 1.4700 mark. However, bounce from this 1.4700 mark support now seems to find difficulty in conquering 1.4950-60 resistance area, represented by 23.6% Fib. retracement level of its upswing from April lows to August highs. The movement between an intermediate support and immediate resistance suggests near-term range-bound move till the pair either breaks below 1.4700 mark support or decisively strengthens above 1.4950-60 resistance. A clear strength above 23.6% Fib. retracement level seems to boost the pair immediately towards 1.5150 resistance area. Meanwhile, decisive weakness below 1.4700 mark is likely to drag the towards testing sub-1.4600 mark support, representing 38.2% Fib. retracement level.

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