Technical Update – AUD/CAD, EUR/CAD and CAD/JPY

AUD/CAD

Although the pair has witnessed some recovery from multi-year low level, tested in Sept., it still remains confined within a well-established descending trend-channel. Hence, from current level any further up-move is likely to confront a strong resistance near 0.9750 region, marking the upper trend-line resistance of the channel. Only a sustained break-through the descending trend-channel might open room for further near-term recovery towards making an attempt to reclaim parity mark. Meanwhile on the downside, 0.9560-50 zone seems to provide some immediate support for the pair. Below 0.9550 level support, the pair seems to drift back to its historic support near 0.9420-0.9400 mark. On sustained weakness below 0.9400 mark, the pair seems to resume its prior weakening trend, back towards testing the lower trend-line support of the channel, currently near 0.9070-50 region.

EUR/CAD

After confirming a bearish descending triangular formation and a subsequent break below an ascending trend-line support, the pair continued drifting lower and has now dropped to the very important 200-day SMA support near 1.4110-1.4100 area. Extension of the pair’s weakness below 200-day SMA might now find support at 61.8% Fib. retracement level of April to August up-swing, near 1.4000-1.3990 area. Meanwhile, in order to register any meaningful recovery, the pair first needs to clear 1.4150 immediate resistance, which if conquered has the potential to lift the pair back towards retesting 50% Fib. retracement level resistance, near 1.4290-1.4300 region.

CAD/JPY

On 4-hourly chart, the pair seems to have formed a bearish Rising Wedge chart-pattern, and is currently trading close to the lower ascending trend-line support near 91.75-70 area. Should the pair decisively break below 91.75-70 support area, thus confirming the bearish patter, it is likely to drop immediately towards its intermediate support near 91.50 level before heading towards its next major support near 90.60-50 area, marking low tested in late October. Alternatively, should the pair manage to hold and rebound from this immediate support, it is likely to confront immediate resistance near 92.30 horizontal level. Sustained strength above this immediate resistance now seems to pave way for extension of the bounce back towards testing its major resistance near 93.00-93.10 zone.

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