Market analysis on EURUSD, AUDUSD, and USDCAD: 24th October -28th October

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EURUSD: 24th October -28th October 

EURUSD

Figure: EURUSD daily chart

There has been a sharp fall in the EURUSD pair in the last week and the price eventually cleared the critical support level at 1.09398.This level was pretty much significant to the traders since the 61.8% Fibonacci retracement level also coincide with the critical support level of 1.09398.The bullish Fibonacci retracement level was drawn by using the low of 2nd December 2015 and the high of 2nd may 2016.The pair is most likely to find minor support near the 1.08310 level. If that support level holds then the pair is most likely to retrace back towards the first critical resistance level at 1.10690 where the 50% retracement level lies. A valid break of that level will bring the buyers again into the market which will move the price towards the broken bullish trend line resistance at 1.3645 level. A clear break of the critical resistance level of 1.3645 level is required to confirm the bullish reversal in this pair.

Price is trading too close the support level so professional traders are not willing to enter short in the EURUSD pair at the current market price. In the eyes of trained professional, critical resistance level at 1.09398 is going the perfect selling spot for the EURUSD pair. However, there might be extended retracement in the EURUSD pair towards the 2nd critical resistance level which is at  1.10690.So it is highly imperative to use bearish price action signal before entering short using this significant resistance level. The first bearish target for the pair would be critical support level at 1.07101.A decisive break below that level will bring further downward move in the EURUSD pair towards the key support level at 1.05190.If the pair manages to breach that level than the long term bearish trend in the EURUSD pair will again come into action. Considering all the parameter the overall bias remains strongly bearish for the EURUSD pair in the upcoming week.

AUDUSD Forecast: 24th October -28th October

AUDUSD

Figure: AUDUSD daily chart

The triangle pattern is almost complete in the daily chart in the AUDUSD pair. There has been a minor breach in the triangle sloping resistance line at 0.76897 in the last week but the price eventually closed within the triangle region in the last week. The current critical resistance level for the AUDUSD pair would be the triangle resistance level at 0.76897. A clear break above that level will bring fresh buying pressure in the AUDUSD pair. A valid break of that level will lead the pair towards the next critical resistance level at 0.78325 .This level is going to provide a significant amount of selling pressure to AUDUSD pair since the pair hasn’t breached that level till 19th April 2016.A clear break of that high will confirm the bullish reversal in the AUDUSD pair and the pair rally towards the major resistance level at 0.80000 level.

The price is most likely to hit the triangle support level at 0.75347 and from there we might see a decent bounce in the AUDUSD pair. However, if the pair manages to breach the triangle support zone at 0.75347 than we will see a strong bearish rally in the AUDUSD pair towards the next critical support level at 0.71506 level. From that level, the pair is most likely to find some support which might create ranging move in the market. A clear decisive break of the price below the 0.71506 level will bring sharp fall in the price towards the next critical support level at 0.68341 level. If the pair manages to breach that level the long term bearish trend in the AUDUSD pair will continue its bearish ride. Considering all the parameters the overall bias is slightly bearish and valid break of the triangle support level at 0.75347 is required to enter short into this pair.

USDCAD Forecast: 24th October -28th October 

USDCAD

 Figure: USDCAD daily chart

There has been a strong bullish rally in the USDCAD pair in the last week. The pair has formed nice ascending channel pattern in the daily chart and the price is now trading closely towards the channel resistance level at 1.33717.A clear break of the channel top resistance level will bring further bullish momentum in the AUDUSD pair towards the next critical resistance level at 1.36296.From that critical resistance level, the pair is most likely to exhibit ranging movement from critical resistance level  at 1.36296 to the critical support level 1.33717(Channel resistance will turn into support).A valid break of the critical resistance level at 1.36420 will confirm the continuation of the bullish breakout.

If the pair fails to break the channel top resistance at 1.33717 then the pair will drop sharply into the channel floor. From the channel floor support at 1.2880 level, the pair is most like to exhibit a decent bullish bounce. A clear break of the critical support level at 1.2880 level will bring strong bearish momentum in the market towards the next critical support level at 1.26606 level. The minor support at 1.26606 level is going provide temporary support to this pair but eventually, the pair will test the low of 2nd may 2016 at 1.24652.From that level, the pair is most likely to find a significant amount of support which might bring a bullish reversal in the pair but a valid decisive break below that level will confirm the establishment of strong bearish pressure in the market. Considering all the fact the overall bias remains slightly bullish in this pair and we will wait cautiously for the price to break the channel support or resistance level.