Technical Update For EUR/USD, USD/JPY, USD/CAD & AUD/USD: 29.05.2018

EUR/USD

Political deadlock at Italy proved to be another positive factor for the US Dollar that just dragged EURUSD beneath 1.1560-50 horizontal-support; however, oversold RSI could act as a barrier for the pair in order to extend its south-run towards 1.1470 and 1.1450 supports. Should Bears continue dominating trade sentiment and ignore the RSI by conquering 1.1470 & 1.1450, the 1.1370 and the 1.1290-80 may become their favorites. Alternatively, failure to close below 1.1550 can trigger the pair’s pullback to 1.1620 and then to the 1.1660 whereas 1.1705-15 resistance-area and the descending trend-line, at 1.1760, might confine the quote’s further upside. Assuming that the recovery stretches beyond 1.1760 on a daily closing basis, the 1.1825, the 1.1880 and the 1.1910 may please the Bulls.

USD/JPY

While break of seven-week old ascending trend-channel pushed USDJPY to the lowest level in a month, the pair might find it hard to decline below 108.20-15 support-confluence, including 50-day & 100-day SMA, which if broken could challenge the sellers by 107.90-80 support-zone. Given the pair’s sustained downturn below 107.80, the 107.50, the 107.00 and the 106.60 can mark their presence on the chart. Meanwhile, the 109.00, the 109.80 and the 110.20, including 200-day SMA, can limit the pair’s nearby advances, clearing which 110.80 & 111.40 may get buyers’ attention. Let’s say the pair successfully trades beyond 111.40, chances of witnessing 112.00 round-figure can’t be denied.

USD/CAD

USDCAD’s rally beyond 1.3000 psychological magnet enables it to test the strength of 1.3045 resistance where overbought RSI may play its role in activating the pair’s profit-booking. If prices refrain to respect the overbought RSI and surpass 1.3045 mark above D1, the 1.3120 and the 61.8% FE level of 1.3180 may gain the limelight. In case the 1.3045 manages to trigger the pair’s U-turn, the 1.3000 and the 1.2920 are likely supports to watch while 1.2830 & 1.2800 seem important afterwards. Moreover, pair’s additional declines below 1.2800 may help the pessimists target the 1.2760 and the 100-day SMA level of 1.2720.

AUD/USD

Unlike previous three majors that has already smashed important levels, the AUDUSD is still resting on the support-line of short-term symmetrical triangle, around 0.7505, break of which become necessary for the pair to avail the 0.7480, the 0.7460 and the 0.7445 rest-points. Should prices dip below 0.7445, the 0.7410 may act as an intermediate halt prior to registering 61.8% FE level of 0.7355 on the chart. On the upside, the 0.7540, the 0.7570 and the formation resistance of 0.7600 could restrict the pair’s immediate advances. Given the pair’s ability to break the 0.7600, the 0.7620, the 0.7650 and the 0.7700 might prove their worth for optimists.

Cheers and Safe Trading,
Anil Panchal