Even as a three-week old ascending trend-line restricts EURGBP downside, the pair seems in the process of forming “Head And Shoulders” bearish technical pattern. Considering its recent trend, mainly due to the disappointing UK Retail Sales, the pair might break 0.8385-90 area, comprising 23.6% Fibonacci Retracement of its June – July rally and short-term descending TL, and can rise to 0.8430. Should the pair manage to clear the 0.8430 resistance, the downward favoring formation gets negated and it can further advance towards 0.8500 and the 0.8550 resistances ahead of challenging the current month highs of 0.8630 and aim for 0.8700 round figure mark. Alternatively, 0.8295 and the mentioned trend-line neckline of 0.8270 are likely nearby supports for the pair traders to consider, breaking which its chances to plunge towards 0.8000 psychological magnet gets firm; however, 50% Fibo level of 0.8110 might act as intermediate rest. Given the pair continue extending its south-run below 0.8000, 0.7880 and the 0.7800 are expected consecutive downside numbers to be seen on the chart.
EURAUD’s failure to sustain the break of a downward slanting trend-channel signals continuation of pullback towards 1.4625 immediate horizontal support, breaking which 1.4590 and the 1.4520 are follow-on rests to observe. If the pair further declines below 1.4520, the recent lows of 1.4480 might act as a small barrier for it to clear ahead of visiting the 1.4400 support-mark while additional downside after 1.4400 break can fetch the quote towards mentioned channel support of 1.4300. On the upside, 23.6% Fibonacci Retracement of its May – July drop, near 1.4755-60, and the 1.4800 horizontal-mark, can continue restricting the pair’s short-term advances. Given the pair’s break above 1.4800, the 1.4885-90 and the 38.2% Fibo level of 1.4930, are expected numbers to be seen on the chart.
Short-term ascending trend-channel favors the EURNZD upside towards 1.5865-70 horizontal-line; however, the overbought RSI raises doubts on its further run-up beyond the same. Should the pair surpasses 1.5870, 61.8% Fibonacci Retracement level of 1.5950 and the channel resistance of 1.5970 could hinder its further advances, failing to which can propel its upward trajectory towards 1.6000 and the 1.6100 – 1.6110 horizontal area. Meanwhile, 1.5700, the channel support of 1.5640 and the 38.2% Fibo level of 1.5625 are adjacent supports for the pair traders to watch. Given the pair drops below 1.5625, chances of its downturn to 1.5600 and the 1.5480 can’t be denied.
During the EURCAD’s gradual recovery from 1.4290-95 horizontal support, the pair is now aiming to break the 1.4420 resistance and run to 38.2% Fibonacci Retracement of its May – June decline, around 1.4450. Though, two-month old descending trend-line level of 1.4480 might restrict its additional upside beyond 1.4450, failing to which can print 1.4530 on the chart. However, increase in crude prices and a dovish statement by the ECB President Mario Draghi can fetch the quote below its 1.4330 immediate support prior to forcing the pair to revisit 1.4295-90 area. Should the pair decline below 1.4290, it can take a halt at June lows of 1.4245 ahead of testing the 61.8% FE level of 1.4200 mark.
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