Technical Checks For USD/CAD, GBP/CAD & CAD/JPY: 07.07.2017

USD/CAD

Although 1.2910 triggered the USDCAD’s U-turn during early weekdays, the pair failed to surpass 1.3010-15 horizontal-line and is presently struggling between the same 1.2910 – 1.3015 region ahead of the monthly labor markets numbers from US & Canada. Considering the upbeat expectations from US jobs report, coupled with declining Crude prices, chances of the pair’s upside are higher than the otherwise; however, 1.3010-15 and the fortnight long descending trend-line number of 1.3035 become crucial for traders to watch. Should Bulls’ dominance help the pair to surpass 1.3035 TL, the 1.3075 and the 1.3130 are likely following resistances to appear on the chart. Alternatively, a surprise disappointment from US details can drag the quote to 1.2950 and the 1.2925 supports prior to portraying the 1.2910 re-test. Given the pair’s additional decline after 1.2910 break, 61.8% FE level of 1.2865 and the 1.2820 can be aimed while being short.

GBP/CAD

With the recently released downbeat UK Manufacturing Production & Goods Trade Balance, the GBP registered noticeable decline against majority of its counterparts. The same is the case with GBPCAD which is now aiming to test 1.6680 support; though, lower-line of a month-long descending trend-channel, at 1.6665, might restrict the pair’s further drops. If Pound Bears neglect to respect 1.6665 mark, 61.8% FE level of 1.6590 and the April low around 1.6510 can be expected as supports. Meanwhile, the 1.6870 and the 1.6920 are likely nearby resistances that may limit the pair’s recovery before the channel-resistance figure of 1.6945 comes into play. When there prevails an additional buying momentum after 1.6945, the 1.7000 psychological magnet, the 1.7080 and the 1.7165-70 horizontal-line should be flashed in buyers’ radar.

CAD/JPY

Considering the CADJPY’s repeatedly failed attempts to clear the 87.70-75 horizontal-line, together with overbought RSI, the pair’s U-turn towards 86.85 and then to the 86.10 becomes more expected but the 85.90-80 area might limit its further downside. In case if 85.80 fails to sustain the selling pressure, the 84.80 and the 84.30 should gain importance as following supports. On the contrary, pair’s break of 87.75 enables it to target the 88.00, the 88.50 and the 89.00 round-figure before looking at the 90.00 resistance-mark. During the pair’s extended up-moves beyond 90.00, the 90.55 and the 91.50 are likely landmarks to observe.

Cheers and Safe Trading,
Anil Panchal