In Swissquote’s Wednesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for USD/CAD and EUR/JPY. To view and download the entire report, click here (PDF).
USD/CAD: Challenging its recent highs
• USD/CAD continues to improve after its successful test of its rising channel. A break of the resistance at 1.1099 would favour further gradual strength towards the strong resistance at 1.1279. Hourly supports can be found at 1.0986 (23/09/2014 low) and 1.0927 (22/09/2014 low).
• In the longer term, the technical structure looks like a rounding bottom whose minimum upside potential is at 1.1725. However, a break of the support area implied by the long-term rising trendline and 1.0559 (29/11/2013 low) would invalidate this long-term bullish configuration.
EUR/JPY: Short-term corrective phase likely underway
• EUR/JPY made a sharp bearish intraday reversal on Friday, indicating exhaustion in buying interest. A short-term corrective phase is likely underway, which favours a test of the support at 138.47 (15/09/2014 low). An hourly support can be found at 139.15 (18/09/2014 low). Hourly resistances stand at 140.20 (22/09/2014 high) and 141.23.
• The long-term technical structure remains positive as long as the support at 134.11 (20/11/2013 low) holds. The break of the strong resistance at 140.09 (09/06/2014 high) has improved the medium-term technical structure. A resistance can be found at 142.47 (29/04/2014 high).
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