Important CAD Pair’s Technical Overview: 01.02.2017


Following its another reversal from 1.3570 – 1.3600 horizontal-region, comprising 50% Fibonacci Retracement of January – May 2016 downside, the USDCAD maintained its downturn and is presently around 1.3010 – 1.3000 support-zone. Considering oversold RSI and pair’s repeated failures to dip below 1.3000, chances of it’s bounce to 1.3150, 1.3190 and then to 1.3260 become brighter. However, 1.3290 resistance-confluence, including 100-day SMA & month-old descending trend-line, might restrict the pair’s further advances, which if broken enables the quote to aim for 1.3400 and 1.3470 before confronting with 1.3570 – 1.3600 again. If at all the pair stretch its present downside below 1.3000 on a daily closing basis, it becomes vulnerable to meet 1.2910 & the 1.2830 support-levels. Should Bears refrain to stop governing prices below 1.2830, it becomes wise to expect 1.2760 & 1.2650 downside figures on the chart.



Given the EURCAD’s latest U-turn from 1.4125-30 horizontal-line, the pair becomes liable to revisit 1.4060 ascending trend-line support, breaking which 1.4035 and the 1.4000 psychological magnet might halt its further downside. In case of the pair’s sustained weakness below 1.4000, the 1.3960-55 horizontal-line becomes crucial to watch for traders, which if broken can open the door for its extended south-run to 1.3900 mark. On the upside, pair’s break of 1.4130 can quickly trigger its gradual advances towards 1.4170, 1.4190 and then to 1.4215 resistances. Should the pair manage to break 1.4215, the 1.4250 & 1.4280 might offer intermediate halts prior to fueling the quote beyond 1.4300.



As 86.35-30 horizontal-line provided much needed trigger to the CADJPY, the pair seems heading towards 87.00 and then to 87.55; however, a month-old descending trend-channel resistance, at 87.70, becomes an important hurdle for the quote to surpass in order to aim for 88.00, 88.60 & 89.00 resistance-levels. Meanwhile, 86.30 can continue acting as short-term strong support, breaking which prices can quickly dip to 50% Fibonacci retracement level of 85.80 before meeting 85.50. During the pair’s sustained drops below 85.50, the 85.00 and channel-support-line of 84.70 should be watched closely, which if broken may give rise to its fresh downturn towards 84.00 & 83.30.



Even after bouncing from 0.9850, the AUDCAD might find it difficult to surpass 0.9930 horizontal-line, which in-turn signal brighter chances of a pullback towards 0.9880 & 0.9850. If the pair stretches the pullback below 0.9850, the 0.9815 & 0.9780 are likely stops that it could avail before confronting 0.9760-55 multiple support-zone. Alternatively, the pair’s break of 0.9930 enables it to meet 0.9980 and the 1.0000 psychological magnet. Moreover, a sustained up-move beyond 1.0000 might please buyers with 1.0025 & 1.0050 before 1.0090-95 horizontal-line could question Bulls’ strength.

Cheers and Safe Trading,
Anil Panchal