Technical Update - EURGBP, EURCAD, EURJPY and EURAUD
EURGBP
Although the pair has given-up majority of its gains registered from lows tested in July and August, it has managed to hold a descending trend-line support on daily chart. This descending trend-line support along-with another descending trend-line seems to constitute towards formation of a bullish reversal, Falling Wedge chart pattern. The pattern, however, is confirmed only once the pair decisively strengthens above the upper descending trend-line resistance, currently near 0.7110-15 area. Hence, sustained strength above 0.7100 mark resistance would confirm the bullish formation, thus paving way for further near-term appreciating move towards its next major resistance near 0.7240-50 horizontal area. Meanwhile on the downside, the lower descending trend-line, currently near 0.7020-0.7000 mark, might continue to provide immediate support. Failure to hold this immediate strong support, thus negating the bullish chart-pattern, might now open room for extension of the near-term descending trend, initially towards 0.6950-40 intermediate support and eventually towards testing 0.6830-20 support area, marked by 61.8% Fib. expansion level.
EURCAD
On daily chart, the pair has clearly broken below a descending triangular formation support, also coinciding with 38.2% Fib. retracement level of April to August upswing. The pair is currently hovering around 1.4300 mark, representing 50% Fib. retracement level. From current levels the pair seems to resume its near-term downward trajectory towards retesting 200-day SMA support, currently near 1.4110-1.4100 mark, which if broken has the potential to drag the pair further towards testing sub-1.4000 psychological mark support, coinciding with 61.8% Fib. retracement level. Alternatively, should the pair continue holding above 1.4300 mark and manages to strengthen back above 1.4350-70 resistance area, it seems to extend the bounce back towards 1.4500 round figure mark resistance. The bounce could further get extended towards retesting the horizontal support break-point, turned strong resistance, near 1.4590-1.4600 area.
EURJPY
The pair remains within a well-established short-term descending trend, as depicted by a descending trend-channel formation on daily chart. The pair is currently holding 23.6% Fib. retracement level support near 131.60-50 area below it is likely to accelerate the fall immediately towards testing the lower trend-line support of the descending channel, currently near 130.50-30 area. On the upside, 133.00 round figure mark seems to have emerged as immediate strong resistance. This is closely followed by another resistance near 133.50-70 horizontal zone. Sustained strength above 133.00 mark, leading to a move above 133.50-70 resistance area, is likely to set the stage for extension of the near-term upward trajectory back towards 135.00 psychological mark resistance, coinciding with 38.2% Fib. retracement level of Dec. 2014 to April 2015 downfall.
EURAUD
The pair on Thursday dropped to its lowest level since August 11 and is currently trading below 50% Fib. retracement level of April to August 2015 up-move. Moreover, on daily chart the pair has decisively broken below a short-term descending trend-channel, thus making it vulnerable to continue drifting lower towards testing its next major support confluence near 1.4800 mark, comprising of 61.8% Fib. retracement level and 200-day SMA. Meanwhile on the upside, a sustained strength above 1.5140-50 area might now confront a strong resistance at the descending trend-channel support break-point now turned immediate strong resistance, currently near 1.5250 region. Only a decisive strength back above 1.5250 strong resistance might negate the near-term bearish expectations. However, considering the pair's decisive break below a descending trend-channel, it seems more likely to remain vulnerable to continue drifting lower in the near-term.
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