Technical Check: AUDCAD, EURCAD and CADCHF

January 29, 2016 12:01

AUDCAD

Even as the descending trend-line, joining December highs to January highs, fetched the AUDCAD down to test the 50-day SMA for the first time since November 2015, an upward slanting trend-line stretched from early December, coupled with the mentioned SMA and 38.2% Fibonacci Retracement of its November – December 2015 up-move, presently near 0.9880 – 0.9900 area, favored the pair's bounce, indicating a quick test to 1.0000 psychological mark. However, the pair's further advances beyond 1.0000 might find it difficult to break the mentioned trend-line resistance, near 1.0040 now, which if broken, can propel its north-run to 1.0100 and then to December high of 1.0170 prior to targeting 61.8% FE of the said move, near 1.0270. Meanwhile, 0.9880 – 0.9900 continue providing strong downside support to the pair, breaking which it can quickly drop to 0.9800 round figure mark, comprising 50% Fibo level. Should the pair maintain its downturn intact after breaking 0.9800 mark, the 61.8% Fibo, near 0.9715-20 area, and the 0.9650, are likely consecutive levels that it might witness before expecting the 0.9500 support level.

EURCAD

Following the EURCAD's reversal from important 1.6100 – 1.6115 resistance region, comprising upper-line of the two month old ascending trend-channel and more than a year old upward marking trend-line, the pair dropped below mentioned channel-support and is now likely to test 1.5160-50 immediate support-zone. Given the pair's extended downside below 1.5150, it can test 50-day SMA, near 1.5000 psychological magnet, and the 1.4920-50 support-area, including 38.2% Fibonacci Retracement of its April 2015 – January 2016 advance. Moreover, a closing break of 1.4920, also defeating the 1.4900 mark, might drag the pair further down to 50% Fibo level, at 1.4565. Alternatively, pair's bounces from the current levels have to clear 1.5450 and the channel support-now-resistance level of 1.5600 mark prior to expecting 1.5750 and the 1.5930 resistances. Moreover, pair's successful rise beyond 1.5930 may have to counter early month high of 1.6105 and the trend-line resistance, now at 1.6155, in order to rise towards 1.6500 area.

CADCHF

CADCHF's north-run from 0.6800 area fueled the pair towards testing the highest levels in more than a month; however, 0.7250-60 horizontal resistance region, including 50-day SMA, quickly followed by the 50% Fibonacci Retracement of its November 2015 – January 2016 downside, at 0.7275, might restrict the pair's near-term advances. Should the pair manage to surpass 0.7275, the pair can stretch its northward trajectory to 0.7320 and the 0.7400 round figure mark. If the pair continue rising beyond 0.7400, the 0.7470 and the 0.7530 are likely consecutive resistances that it could witness during its up-move to 0.7600 resistance level. On the downside, the pair's incapacity to clear mentioned resistance region can fetch it to 38.2% Fibo level of 0.7160, breaking which 0.7060 and the 0.7015 may hold the pair's further decline. If at all the pair plunges below 0.7015, it can re-test the early month lows of 0.6800 mark with 0.6950 being intermediate rest point.

Follow me on twitter to discuss latest markets events @Fx_Anil

Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.