Technical Overview: GBPCAD, EURCAD, AUDCAD and CADJPY
GBPCAD
Following its bounce from 1.9750-30 important horizontal support, also including lower line of the "Falling-Wedge" bullish formation, the GBPCAD rallied towards the highest level in nearly three weeks; however, resistance line of the formation, coupled with 2.0100 – 2.0120 horizontal resistance, limited the pair's further advance. The pair now struggles between the 2.0100 – 2.0120 immediate important resistance and 100-day SMA support, presently at 2.0020. Though, considering the nearness to BoC meeting, chances are higher that the pair breaks the 2.0120 mark and could rise to 2.0440-50 resistance area. Should the pair manage to sustain its up-move beyond 2.0450, it becomes capable enough to challenge 2.0550 and the 2.0700 upside levels prior to targeting the August highs of 2.0970. On the downside, a dip below 2.0020 can quickly pull the pair to 1.9860-50 support-zone, breaking which the mentioned 1.9750-30 and the formation support, currently at 1.9650 are likely important levels that could limit the pair's downside. Given the pair's inability to hold 1.9650, it becomes vulnerable to plunge towards 200-day SMA, near 1.9400 round figure mark.
EURCAD
Ever since the EURCAD reversed from August highs of 1.5560, the 1.5100 – 1.4580 rectangle formation keep restricting the pair's move. The pair recently tested the range support and has bounced to 1.4815 immediate resistance. Should it manage to extend its pullback above 1.4815, it could test the 1.4900 round figure mark prior to targeting 1.4960, the 23.6% Fibo of its April – August rally. Further, subsequent up-move beyond 1.4960 by the pair is likely being tamed by the 1.5100 range resistance, breaking which chances of its run to 1.5430 can't be denied. Alternatively, the 1.4650 and range support, near 1.4580, also encompassing the 38.2% Fibo, are likely nearby supports that the pair should test. If the pair fails to stop its downturn near 1.4580, chances of its quick decline to 1.4490-80 horizontal resistance-turned-support becomes brighter. Moreover, a clear break below 1.4480 may open room for the pair's plunge to 50% Fibo, near 1.4300 round figure mark and then to the 200-day SMA, near 1.4100 support area.
AUDCAD
Although short-term ascending trend-channel keep favoring the AUDCAD advance, the pair recently reversed from the confluence of 200-day SMA and channel resistance and plunge below the 0.9430 – 0.9400 broad support region. From the current moves, it is more likely that the pair can test 23.6% Fibo of its January – September decline, near 0.9360 before testing the channel support, near 0.9300 psychological level. Should the pair fails to hold 0.9300 mark, it can quickly come down to 0.9240 and the September lows, near 0.9150 support levels. On the upside, a reversal from the current level should close above 0.9430 in order to aim at 38.2% Fibo, near 0.9500 mark, breaking which 200-day SMA, near 0.9575 and the channel resistance, currently near 0.9615, that also includes 50% Fibo, are likely important upside levels that the pair traders need to seriously observe.
CADJPY
Irrespective of the CADJPY's genuine observance to three month old descending trend-line, the 50-day SMA, near 91.50 at present, could continue limiting the pair's downside. If the pair breaks the 91.50 on a closing basis, the 23.6% Fibo of its June – August decline, near 90.60, and the 90.00 psychological magnet are important support levels that could restrict the pair's downturn before it could test the 88.85 – 88.80 horizontal support. Meanwhile, the said descending trend-line and the 38.2% Fibo, near 92.70-75 area becomes immediate important resistance for the pair to break to witness 93.30 and the 50% Fibo, near 94.30. Moreover, pair's ability to surpass 94.30 on a closing basis can direct the pair's upward trajectory towards 96.00 round figure mark.
Follow me on twitter to discuss latest markets events @Fx_Anil
