Admiral Markets
AdmiralMarkets.com Representative
- Messages
- 95
Technical outlook – CADCHF and EURJPY
CADCHF continued trading above its 100-day EMA ever since the breakout took place during early May. The pair did test the same moving average on the start of the June but reversed during the last week after weaker economic signals from Switzerland fueled the pair. Market players are waiting for quarterly release of SNB’s monetary policy assessment in order to determine the strength of CHF. Further, ECB’s interest rate cut continued weakening the EUR against its major counterparts; however, the recent release of minutes for BoJ provided weakness to JPY, causing the EURJPY to test the highest level in more than a week. Meanwhile, following is the brief technical overview of CADCHF and EURJPY.
CADCHF
EURJPY
“Original analysis is provided by Admiral Markets”
CADCHF continued trading above its 100-day EMA ever since the breakout took place during early May. The pair did test the same moving average on the start of the June but reversed during the last week after weaker economic signals from Switzerland fueled the pair. Market players are waiting for quarterly release of SNB’s monetary policy assessment in order to determine the strength of CHF. Further, ECB’s interest rate cut continued weakening the EUR against its major counterparts; however, the recent release of minutes for BoJ provided weakness to JPY, causing the EURJPY to test the highest level in more than a week. Meanwhile, following is the brief technical overview of CADCHF and EURJPY.
CADCHF
- Even after reversing from 100-day EMA and crossing 23.6% Fibonacci Retracement Level if its May 2013 to March 2014 downfall, during last week, the pair seems incapable to breaking multiple resistance zone of 0.8300, which is closely followed by another horizontal resistance zone near 0.8330. Should the pair continue trading above 0.8330, it can rally towards 0.8410, breaking which the pair is likely to surpass 38.2% Fibonacci Retracement Level and can test 0.8530-35 resistance zone. A sustained trading above 0.8535 negates the chances of near-term downtrend by fuelling the pair towards 0.8650 region.
- On the downside, 23.6% Fibonacci Retracement level near 0.8310 becomes immediate support for the pair, breaking which the 100-day EMA continued to become critical support for the pair near 0.8170-65 region. A daily close below 0.8165, can weaken the pair towards testing 0.8040 levels.
- Inability to surpass horizontal line resistances, coupled with downward slopping RSI, signals that the pair is vulnerable to re-test its 100-day EMA.
EURJPY
- Having failed to close below 38.2% Fibonacci Retracement Level of June 2013 to December 2013 up move, the pair seems reversing towards its immediate resistance level of 200-day SMA near 139 level, breaking which 140 level, coinciding 50-day SMA, becomes consequent resistance for the pair. On the sustained trading above 140 level, the pair is vulnerable to test 140.80 – 141.00 resistance zone, encompassing descending trend line, stretched from December 2013, together with 23.6% Fibonacci Retracement Level.
- On the downside, 38.2% Fibonacci Retracement Level, near 137.70, can become immediate support for the pair, breaking which psychological support level of 137 can become intermediate support before the pair can test 136.00 - 135.90 region. A sustained trading below 135.90 can make the pair vulnerable to test important support level of 135.30, coinciding multiple support levels near 50% Fibonacci Retracement Levels.
- Even though, the pair did reverse from 38.2% Fibonacci Retracement Level, it continues to trade below its 200-day SMA. Moreover, the descending trend line on prices and RSI can become another signal for the continuation of downtrend in near term.
“Original analysis is provided by Admiral Markets”