Important CAD Pair’s Technical Overview: 17.01.2018

USD/CAD

It has been more than two days that the USDCAD is still clubbed in a small range between 1.2470 and the 1.2395 as Loonie traders are waiting for the Bank of Canada’s much anticipated rate-hike and the Governor’s press conference. Given the 0.25% rate increase being a well known fact, the central-bank signal for future such actions and Mr. Governor’s optimism relating the economy will be closely observed. Should the BoC manage to please CAD buyers with upbeat statement and Federal Reserve-like three rate-lifts a year promise, the USDCAD can plunge beneath the 1.2395 and quickly test the recent low of 1.2355. However, increased optimism of the central bank could drag the pair beneath the 1.2355 towards 61.8% FE level of 1.2240 with 1.2300 being intermediate halt. In case of the disappointment-driven rally by the pair, a short-term descending trend-line figure of 1.2500 becomes important to watch, breaking which 1.2555 and the 1.2585-90 horizontal-line can appear on the chart. If the quote surpasses the 1.2590 mark, the 1.2630 and the 1.2700 may favor the pair buyers.

CAD/JPY

Alike USDCAD, the CADJPY moves are also confined in a range between 100-day and 50-day SMA levels of the 89.15 and the 88.60 respectively. If the BoC’s outcome drags the pair to south, the 88.00 and an upward slanting TL support of 87.20 gain traders’ attention while 86.70 and the 85.60 may entertain sellers then after. Alternatively, a clear break of 100-day SMA level of 89.15 can propel the pair to 89.60 and then to the 90.00; though, it’s following advances might find it hard to surpass the 90.75 and the 91.55-65 region. Given the pair’s ability to conquer 91.65, it can extend the northward trajectory in direction to 61.8% FE level of 93.55.

AUD/CAD

Contrast to the aforementioned pairs, AUDCAD has already surpassed the 200-day SMA level of 0.9905 and is currently staying above the 0.9915-25 area but the pair’s daily closing beyond 0.9925 is required for it to justify the strength in targeting 0.9960 and the 1.0000 round-figure. Moreover, pair’s successful trading above 1.0000 may help it to aim for the 1.0040 and the 1.0100 resistances. Meanwhile, the 0.9880 is likely nearby rest for the pair if it closes below 0.9905, breaking which 0.9840 and the 0.9770 can come-back; though, 50-day SMA and an adjacent trend-line support zone of 0.9755-50 might restrict the pair’s additional downturn.

NZD/CAD

For NZDCAD, the 0.9000 and the 0.9110-15 horizontal-line are immediate technical levels that become important. If the pair closes below 0.9000, the 0.8950 and the 0.8925 mark, including near-term ascending trend-line, may try challenging its south-run, failing to which can reignite possibilities to witness 50-day SMA level of 0.8860 as the quote. Should the prices decline beneath 0.8860, chances of its plunge to 0.8770 can’t be denied. On upside, pair’s sustained trading above 0.9115 must surpass the 200-day SMA level of 0.9145 if it is to meet the 0.9220 and the 0.9260 consecutive resistances. Further, pair’s extended north-run above 0.9260 can please the Bulls with 0.9300 and the 0.9350 numbers.

Cheers and Safe Trading,
Anil Panchal