Technical Outlook – EURCAD, GBPCAD and CADCHF

EURCAD

After confirming a bullish reversal chart-pattern on daily chart, Inverted Head and Shoulders, the pair cleared 200-day SMA important hurdle and is currently trading at its highest level since Feb. 25. From current levels, a sustained strength above 1.4200 round figure mark seems to assist the pair in extending its upward trajectory, possibly even beyond 1.4300 round figure mark, towards its next important resistance near 1.4330-50 horizontal area. On the downside, 1.4110-4100 zone now seems to protect immediate downside and any weakness below 1.4100 mark now seems to be restricted by a strong resistance, now turned support, near 1.4050 area. However, should the pair breaks through this important support, it could possibly be headed back towards retesting 200-day SMA, currently near 1.3910-1.3900 area.

GBPCAD

The pair marked a V-shaped recovery from the lows touched in April to print a fresh 2015 high and is now headed for its highest weekly close since Oct. 2008. Should the pair continue holding above 1.9700 mark and manage to surpass 2015 closing high resistance near 1.9740, it could possibly extend the bullish momentum towards its immediate resistance near 1.9800 round figure mark. The upward trajectory could further boost the pair in the near-term towards testing the very important psychological mark resistance near 2.0000 level. Meanwhile, should the pair starts reversing its gains and drop back below 1.9700 mark, it seems to drop back towards 1.9550 horizontal support and the drop might get extended towards 1.9500 resistance break-point now turned support area; although 1.9650 might provide some intermediate minor support on the downside.

CADCHF

Weakness below 0.7600 mark confirmed a bearish Double-Top chart pattern formation on daily chart. The pair subsequently extended its weakness even below 0.7420-0.7400 support area, marking 50% Fib. retracement level of its up-swing from Jan. lows to highs touched in March and April 2015. Hence, from current levels the pair seems to continue with its depreciating move towards its next logical support near 0.7300 level, marked by 61.8% Fib. retracement level. On the upside, 0.7400 round figure mark, nearing 50% Fib. retracement level, now seems to have turned as immediate resistance and a move above this resistance is likely to confront a strong resistance near 0.7465-80 area. Should the pair manages to conquer this strong resistance, it could possibly be headed back towards retesting the important support break point, now turned resistance, near 0.7600 region with 38.2% Fib. retracement level near 0.7550 acting as intermediate resistance.

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