Technical Overview: EUR/USD, GBP/USD, AUD/USD And USD/CAD

EUR/USD

Although failure to surpass 1.0480 triggered fresh south-run of EURUSD, the pair presently struggles around 1.0380-65 support-zone, which together with oversold RSI, signals brighter chances of a bounce to 1.0425, 1.0450 and then to 1.0480 resistances. Given the pair clears 1.0480, upper-line of a short-term descending trend-channel, at 1.0520, becomes important for traders to observe, which if broken can offer 1.0560 and 1.0600 resistance figures to buyers. In case if the present strength of the US Dollar drags the pair below 1.0365, the 1.0300 round figure may act as intermediate halt prior to fetching the quote towards channel lower-line of 1.0250. Should Bears rule trading below 1.0250, chances of the pair’s plunge to 1.0100 and then to 1.0000 psychological magnet can’t be denied.

GBP/USD

Alike EURUSD, the GBPUSD also trades around 1.2325-15 horizontal-support and oversold RSI favor its bounce to 1.2380 immediate resistance. Should the pair extend its pullback recovery beyond 1.2380, the 50% Fibonacci Retracement of its latest surge, at 1.2430, and the 1.2470 can please Bulls before offering them 1.2515-20 multiple-resistance-region. On the downside, pair’s drop below 1.2315 can quickly fetch it to 1.2250 and to the 1.2200. Moreover, pair’s sustained weakness after 1.2200 opens the door for its southward trajectory towards 1.2135 and then to 1.2080 supports.

AUD/USD

Following its reversal from 200-day SMA, the AUDUSD plunged heavily and is presently tests 61.8% FE of November month drop, at 0.7235. If prices continue their southward trajectory below 0.7235 on a daily closing basis, the 0.7195 and the 0.7170 can act as buffer-stops prior to fetching them to May low of 0.7145. Moreover, pair’s extended declines below 0.7145 opens the door for 100% FE level of 0.7060 with 0.7100 being in-between halt. Meanwhile, pair’s bounce from 0.7235 can have 0.7280 and 23.6% Fibonacci Retracement of its April – May drop, at 0.7310, as nearby resistances to target, breaking which 0.7320 and the 0.7370 comes into play. Should there be further upside by the quote beyond 0.7370, chances of its rally to 0.7415 and then to 0.7450 become brighter.

USD/CAD

USDCAD’s U-turn from 1.3075-80 support-area, comprising 200-day SMA and 61.8% Fibonacci Retracement of its August – November upside, presently fuels the pair towards challenging short-term descending trend-line resistance of 1.3450, which if broken could extend its north-run towards 1.3490 and 1.3535 upside figures. If prices keep rising beyond 1.3535, the 1.3550 and the November high around 1.3590 are likely intermediate halts before the pair could aim for +1.3600 number. Alternatively, pair’s daily close below 23.6% Fibo level of 1.3390 may drag it to 50-day SMA figure of 1.3345 and then to 1.3310 – 1.3300 region. During the pair’s additional weakness below 1.3300, the 1.3260 and the 1.3220-15 can keep entertaining bears before flashing 1.3140 on the chart.

Cheers and Safe Trading,

Anil Panchal

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