Canadian Dollar

Technical Overview For USDCAD, EURCAD, GBPCAD & CADJPY: 20.07.2017


Irrespective of the USDCAD’s latest bounce from 1.2575, a week-long descending trend-line presently confines the pair’s recovery around 1.2635. Considering the USD weakness, chances of the 1.2600 and the 1.2575 come-back are high, breaking which 61.8% FE level of 1.2555 and the 1.2500 mark might give rise to expectations of a short-covering. Should Bears refrain to respect 1.2500, the 1.2485 and the 1.2460, which signifies 2016 low, could gain attention. On the contrary, break of 1.2635 TL can extend recent pullback moves to the 1.2680, the 1.2700 and then to the 1.2725 consecutive resistances. In case of the pair’s sustained trading above 1.2725, it becomes capable enough to challenge the 1.2770 resistance-mark, which if broken can help buyers to target 1.2800 round-figure.



Unlike USDCAD, the EURCAD has been struggling with a five-month old ascending trend-line support of 1.4500, breaking which 200-day SMA level of 1.4430 might try to limit the quote’s additional downturn. Given the sellers’ dominance drag prices below 1.4430 on a daily closing basis, the 1.4350 and the 1.4230 supports should be wise to expect while being short. In case if the upward slanting TL triggers the pair’s U-turn, the 1.4600 and the 100-day SMA level of 1.4680, adjacent to descending trend-line figure of 1.4720, seem important resistances to watch. If at all the pair’s recovery stretches beyond 1.4720, the 1.4830 and the 1.4900 are likely following north-side numbers to appear on the chart.



With the six-week old descending trend-line successfully restricting the GBPCAD’s up-moves, the pair is currently re-testing the 1.6350 lows before looking at the 1.6300 support. However, the 1.6230 support-confluence, comprising downward slanting TL and 61.8% FE, may confine the pair’s further downside, failing to which can drag it to 1.6200 and then to 1.6115-20 support-zone. Meanwhile, 1.6450 can offer immediate resistance to the pair, breaking which aforementioned TL, at 1.6550, could play its role. Should buyers propel prices beyond 1.6550, the 1.6690 and the 1.6720 seem important levels to observe.



While an immediate ascending trend-line favors the CADJPY’s up-moves, the week-long descending TL, at 89.15, becomes crucial for buyers to wait for before expecting the 89.30 reprint. Should the pair manage to please Bulls with 89.30 clearance, it can rise to 61.8% FE level of 89.80 and then to the 90.00 round-figure. Alternatively, the 88.75 TL support and 88.45 are expected nearby rests for the pair, breaking which 88.25-20 horizontal-region seem crucial support. Given the pair’s break of 88.20, it can gradually come down to 88.00, 87.75 and the 87.40 consecutive supports.

Cheers and Safe Trading,
Anil Panchal