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

EUR/USD

200-day SMA seems presently restricting the EURUSD’s pullback moves from 1.0825-30 area, signaling pair’s renewed downside to 1.0930, comprising 61.8% Fibonacci Retracement level of its March – August advance. However, pair’s further south-run below 1.0930 might find it difficult to drop below short-term ascending trend-line support of 1.0830, quickly followed by the 1.0800 support mark. Should it maintain the downtrend below 1.0800, January lows near 1.0700 and the 1.0630 can offer intermediate rest to the pair before it could re-test December lows of 1.0520. On the upside, closing breaks above 200-day SMA level of 1.1050 might have to clear the 1.1100 and the 1.1150 prior to claiming the 38.2% Fibo level of 1.1230. Moreover, pair’s successful trading above 1.1230 opens the door for its up-move towards 1.1330 and the current year highs of 1.1375-80.

GBP/USD

Following the GBPUSD’s bounce from six month old descending trend-channel support, the pair could mark fresh fortnightly high; though, an intermediate descending trend-line, connecting December highs to February highs, near 1.4290, quickly followed by the 50-day SMA level of 1.4335-40, could restrict the pair’s immediate upside. Given the pair’s capacity to conquer the 1.4340 mark, it can rise to 1.4580 – 1.4600 area, encompassing the channel resistance line, which if broken can propel the pair towards 1.4800 region. Meanwhile, the pair’s pullback from current levels might witness 1.4130 and the 1.4000 psychological magnet as nearby support levels, clearing which 61.8% FE of its October 2015 – January 2016 downside and the channel support, around 1.3780-60 zone, becomes strong enough to limit its additional decline. Should it drops below 1.3760 chances of its plunge to 2009 lows, near 1.3500, can’t be denied.

USD/JPY

While a month old descending trend-line resistance confined USDJPY’s short-covering moves from 111.00 mark, the pair presently struggles with immediate ascending trend-line support, around 112.30-20, which if broken can quickly drag it to 111.80-70 area before re-testing the 111.000 round figure mark. If the pair continues on its southward trajectory below 111.00, the 61.8% FE level of its February month downside, near 110.00, is likely an important support to watch for the pair traders, clearing which it can plunge to 108.40-30 support-zone. Alternatively, 112.80 might offer nearby resistance to the pair before it could test the 23.6% Fibonacci Retracement of late-January – February downside, near 113.50; though, its extended rise beyond 113.50 might again be challenged by the mentioned trend-line resistance, at 114.00 now.

USD/CAD

Even as the break of nine month old ascending trend-line support dragged the USDCAD towards printing new lows for 2016, the pair failed to decisively drop below 200-day SMA, also including the longer-term trend-line support, near 1.3290 – 1.3260 zone now. The pair’s bounce from important support-zone favors its test to 1.3500 adjacent resistance level, clearing which 1.3615-20 is likely a buffer resistance before it could rally to 23.6% Fibonacci Retracement level of its August 2014 – January 2016 upside, around 1.3670-80. Moreover, pair’s successful break above 1.3680 enables it to aim for 1.4000 psychological magnet. On the flipside, a closing break of 1.3260, also extending the downturn below 1.3200 mark, including 38.2% Fibo, can magnify the pair’s south-run to 1.3000 mark, breaking which 1.2850-40 and the 1.2650 are expected downside numbers that it may write.

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