Considering the NZDUSD’s inability to surpass 0.7200, coupled with recent strength of the USD, the pair is likely declining towards the 0.7100 horizontal-line; however, its following downside can be capped by the 0.7075 and the 0.7055 support-levels. Given the pair continue being sellers favorite and drops beneath 0.7055, the 61.8% FE level of 0.7025 and the 0.7000 psychological magnet could appear on Bears’ radar. Meanwhile, the 0.7160 can act as immediate resistance for the pair during its pullback before it could confront the 0.7185 TL and 0.7200 mark. Moreover, pair’s successful trading above 0.7200 enables the buyers to target 0.7240 and the 0.7280 north-side numbers.
Even if the 1.2585-90 resistance-confluence restricted USDCAD’s upside on Tuesday, a short-term upward slanting TL, at 1.2485 now, confines the pair’s present decline, which together with USD’s strength indicate brighter chances of its recovery to 1.2565 and then to the 1.2590 resistances. Should the quote closes beyond 1.2590, the 1.2660 and the 100-day SMA level of 1.2700 are expected stops that it can avail prior to challenging the 1.2760-70 horizontal-area. Alternatively, pair’s break of 1.2485 on D1 basis can quickly fetch it to 1.2400 and then to the 1.2310 adjacent rests while its further south-run can have 1.2240 and the 1.2160 supports to watch. In case if the selling pressure drags prices below 1.2160, it becomes wise to aim for 1.2060 and the 1.2000 while being short.
With a month old ascending trend-channel keep marking its presence, the USDCHF becomes capable enough to extend its advances in direction to early-month high around 0.9835. If the pair continues marching after 0.9835, the 61.8% FE level of 0.9875 and the channel resistance-mark of 0.9885 could please Bulls ahead of offering them the 0.9900 round-figure. On the downside, 0.9770 and the channel-support of 0.9730 could pose as nearby supports for the pair, clearing which it can drop to 0.9670 and then to the 0.9640 levels. Should the quote stretch its southward trajectory beneath 0.9640, the 0.9580 and the 0.9530 could come-back on the chart.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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