Technical Overview of EUR/USD, GBP/USD, NZD/USD & USD/CAD: 09.08.2017

EUR/USD

Following its failure to surpass the 1.1900 mark, the EURUSD has been gradually declining; however, the 1.1720-25 horizontal-line keep restricting the pair’s downturn and is doing the same while writing the article. Hence, the quote’s bounce towards 1.1770 and then to the descending trend-line resistance, at 1.1790, seems imminent. If the pair surpasses 1.1790, the 1.1830, the 1.1865 and the 1.1900 are likely following north-side numbers that can please buyers before flashing the 1.2000 psychological magnet on the chart. Alternatively, the 1.1700, 1.1670 and the 1.1650-45 are likely nearby supports that can entertain the Bears prior to offering them 1.1615-10 area. In case of the pair’s decline below 1.1610, the 1.1560 and the 1.1530 should be watched closely.

GBP/USD

Alike EURUSD, which is bouncing-off an immediate support, the GBPUSD also seems taking U-turn from a six-week old ascending trend-line figure of 1.2980; though, the 1.3055 could limit its recovery, failing to which may help prices to aim for 1.3110, 1.3165 and the 1.3200 resistances. Should buyers keep dominating the pair after 1.3200, chances of its extended north-run to 1.3265-70, 1.3310 and then to 61.8% FE level of 1.3370 can’t be denied. Given the pair’s break of 1.2980, it can quickly drop to 1.2930 and the 1.2860 supports; though, its following decline need to clear 1.2800 and the 1.2760 in order to meet 1.2700 round-figure. During the pair’s sustained south-run after 1.2700, the 1.2655 and the 1.2588 might comeback on sellers’ radar.

NZD/USD

Break of nearly three-month old ascending trend-line dragged NZDUSD to the 0.7300 support-confluence where 50-day SMA and an intermediate upward slanting TL presently confine the pair’s downturn. If the quote closes below 0.7300, the 0.7280, 0.7255 and the 0.7200 can please Bears while 0.7150 and the 100-day SMA figure of 0.7135 can be expected then after. Meanwhile, the pair’s bounce from 0.7300 needs to clear 0.7360 in order to target 0.7400 and the 0.7460 resistances. If at all trade sentiment remain hawkish after 0.7460, the 0.7525, the 0.7560 and the 0.7600 can be aimed while being long.

USD/CAD

With a week-long upward slanting trend-channel portraying USDCAD’s up-move, the pair is likely running towards 1.2700 and the 1.2720 numbers before meeting the channel-resistance of 1.2770. Should prices refrains to respect the channel formation and rise beyond 1.2770, the 1.2860 and the 1.2890 might act as intermediate halt prior to flashing 1.2945 as quotes. On the downside, break of 1.2660 channel-support can trigger the pair’s dip to 1.2630 and the 1.2570; however, 1.2530-25 has multiple rests that may limit its follow-on declines. Given the Bears’ dominance over prices after 1.2525, the 1.2480 and the 1.2450 can act as barriers during its south-run to 1.2415-10 area.

Cheers and Safe Trading,
Anil Panchal