Technical Update Of EUR/USD, USD/JPY, USD/CAD & USD/CHF: 28.02.2017

EUR/USD

Having failed to surpass 1.0630 horizontal-resistance, the EURUSD is presently testing short-term ascending trend-channel support, at 1.0580, ahead of the crucial US GDP, followed by Mr. Trump’s speech. Considering latest forecasts and news, coupled with the pair’s inability to sustain up-tick, chances of better US outcomes dragging the quote towards 1.0550 and then to 1.0520 are higher. Given the pair continue declining below 1.0520, the 1.0490-80 region might offer an intermediate halt prior to flashing 1.0400 round figure on the chart. In case of adverse results from US details and President’s speech, prices can quickly rise to 1.0600 before challenging the 1.0630 and the channel-resistance around 1.0660. Should Bulls command momentum and propel the pair beyond 1.0660, the 100-day SMA figure of 1.0700 grab market attention, which if cleared on a daily closing basis, enables buyers to aim for 1.0755 & 1.0800 north-side figures.

USD/JPY

USDJPY has been struggling to find direction between 113.00 and 100-day SMA figure of 111.80 ever since it closed below 113.00 during last-week. With the present cautious mode of the market, the pair is indicating 111.80 re-test but its following downturn, in case of disappointing USD performance, might find it hard to clear 111.55-35 horizontal-zone. If JPY manage to fetch enough buying and print a daily closing of the pair below 111.35, it would be wise to expect 110.20 & 109.80 as consecutive supports. Alternatively, upbeat USD sentiment might help the pair to challenge 113.00 round figure and rise towards 113.70, followed by intermediate descending trend-line of 114.00. However, 23.6% Fibonacci Retracement of its September 2016 – January 2017 up-move, at 114.30, adjacent to 50-day SMA figure of 114.55, may confine the pair’s advances after it breaks 114.00 TL. Should the pair successfully trades above 114.55, it becomes capable enough to please buyers with 115.55-60 resistance.

USD/CAD

USDCAD again heads to challenge 1.3210 horizontal-line and is likely to please buyers with the break this time, which in-turn could open the pair’s north-run towards 1.3260-65 & then to 1.3315-20 resistances. During the pair’s additional advances beyond 1.3320, the 1.3390 seems an important level, breaking which chances of its extended northward trajectory towards 1.3460 and 1.3480 can’t be denied. Meanwhile, pair’s dip below 1.3160 may give rise to another pullback towards 1.3115 and then to 1.3080. Though, 1.3035-30 horizontal-line could restrict the quote’s further downside below 1.3080, failing to which could reignite possibilities to witness 1.2960-70 on the chart.

USD/CHF

USDCHF is depicting more or less EURUSD-like behavior. The pair dropped from immediate horizontal-line, at 1.0135 now, and is presently running towards testing 1.0030 channel-support. If the present downside momentum forces the pair to defy mentioned trend-channel, it could quickly test 1.0000 psychological mark prior to aiming 0.9960 & the 200-day SMA figure of 0.9900 supports during its additional declines. In case 0.9900 fail to tame bear-power, the quote may extend its south-run towards 0.9860 and the 0.9790 supports. On the upside, 1.0100 becomes an immediate important resistance that the pair needs to surpass before claiming 1.0135 TL, breaking which it can rise to channel upper-line of 1.0200. Should prices sustain 1.0200 break, the 1.0240 & 1.0290-300 region, could hold the pair’s advances, failing to which could again propel it to confront with 1.0340-50 resistance-region, which it failed to surpass during 2016.

Cheers and Safe Trading,
Anil Panchal