Technical Outlook: Important CAD Pairs

On Tuesday, Manufacturing Sales m/m provided across the board strength to the Canadian Dollar; however with no scheduled releases on Wednesday and Thursday, market players are liquidating some of the CAD gains ahead of the CPI and Wholesale sales details, scheduled to release on Friday. Moreover, after the FOMC meeting, took place on Wednesday, Scottish referendum voting, on Thursday, becomes the center of attention of the market.

Also Read: FOMC And Scottish Voting Likely To Fuel The Forex Market

Meanwhile, the following is the brief technical overview of the USDCAD, USDCHF, EURCAD and CADCHF.

USDCAD

Even after plunging heavily on Tuesday, the USDCAD couldn’t break the 1.0925 – 1.0920 support zone, coinciding ascending trend line support, 200-day SMA and 50% Fibonacci Retracement of its December 2013 to March 2014 up-move. The pair is currently trading near 38.2% Fibo. level with 1.1050 being the immediate resistance, breaking which 1.1100 – 1.1110, encompassing 23.6% Fibo. level and a psychological level can become consecutive resistance for the pair. Should the pair sustains the break of 1.1110, the 1.1150 can restrict the rally of the pair before it tests March high near 1.1270. On the downside, the 1.0925 – 1.0920 becomes important support for the pair, breaking which 1.0830 can become immediate support for the pair before it tests the ascending trend line, stretched from September 2012, and the 76.4% Fibo. level near 1.0730. However, 1.0770 can become intermediate resistance level for the pair. Considering the ascending trend line and the MACD, the pair is more likely to trade upwards towards the break of 1.1110.

 

Also Read: Technical Update – EURUSD, AUDUSD, USDJPY

USDCHF

After today’s SNB meeting, the CHF weakened heavily against majority of its counterparts and the USDCHF tested the highest level since September 2013; however, considerably high level of the MACD and the higher pair prices can hurt the strength of the pair to break the horizontal resistance line signing 0.9455 – 0.9460 zone. Should the pair reverses from the current level, 0.9320 can become immediate support for the pair, breaking which 50% Fibonacci Retracement of its May 2013 to March 2014 downturn. On the successful break of 0.9320, the pair crash to 0.9200 support level before testing the important support level of 0.9130, encompassing the 50-day EMA and 38.2% Fibo. level. Alternatively, a break of 0.9460 can fuel the pair towards 0.9530 and the 0.9560 (76.4% Fibo. level) before rallying to 0.9650 level. Given the pair’s ability to sustain the 0.9650 breakout, it can become vulnerable to head towards 0.9750 levels.

 

Also Read: Technical Outlook: Important GBP Pairs

EURCAD

EURCAD couldn’t even strengthen to 1.4400 and declined heavily since the start of the week. The pair is now trading near 1.4150 levels, with the 1.4080 being immediate support for the pair. Moreover, a break of 1.4080 is immediately followed by 1.4030 and 76.4% Fibonacci Retracement of its July 2013 to March 2014 up-move near 1.3930 level. A sustained break of 1.3930 can cause the pair to test 1.3780 support levels. On the upside, 1.4250, including the 61.8% Fibo. level is likely to become immediate resistance for the pair, breaking which 1.4380 and the crucial resistance zone of 1.4410 – 1.4420 can cap the near-term up-move of the pair.

CADCHF

The pair continued observing the ascending trend line support and is heading towards the 0.8590 – 0.8600 horizontal resistance zone, breaking which 0.8670 – 0.8675 can become immediate resistance for the pair to test. On the sustained break of 0.8675, the pair becomes vulnerable to rally towards 0.8780 levels before testing 0.8880 which includes 61.8% Fibo. level. On the downside, 38.2% Fibo. level of 0.8460 quickly followed by the ascending trend line support level of 0.8430 can become consecutive supports for the pair. On the break ob 0.8430, the pair can test 0.8330 before plunging to crucial support level of 0.8200, as indicated by 200-day SMA and 23.6% Fibo. level.

Original Article: Admiral Markets