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The FxPro Analyst Team

Forex: Technical Analysis : USDCAD Tests Major Support after Deep Retracement. USDJPY Tests Major Resistance

USDCAD rallied yesterday with strong bullish momentum after Yellen’s hawkish testimony about a rate hike this year, testing the resistance level at 1.3280.

Yet the rally was followed by a very deep retracement, as it was reported surprisingly that OPEC reaches an output freeze agreement as Saudi Arabia unexpectedly agrees to exclude Iran from the freeze. Canadian Dollar strengthened after the news was released. USDCAD gave up all the previous gains from 23rd onwards. The significant support levels at 1.3200 and 1.3100 were both broken.

It rebounded after testing the downside uptrend line support, the price is likely to hold at this level as it provides a stronger support.

The newly formed resistance level is at 1.3100, followed by 1.3130 and 1.3150.
The newly formed support line is at 1.3070, followed by 1.3050 and 1.3030.

The 4 hourly Stochastic Oscillator is below 20, suggesting a rebound.

Keep an eye on the US Q2 GDP final reading, and Goods Trade balance, to be released at 12:30 GMT. It will likely influence the trend of USDCAD.

usdcad-h4-

USDJPY rallied yesterday as helped by Yellen’s statement on a rate hike this year, testing the resistance level at 101.50.
The resistance level is followed by the upside downtrend line resistance.

The price zone between 101.50 and 102.00 is the major resistance zone, the downward pressure is heavy in this range.

The short term major support level is at 101.00.
The 4 hourly Stochastic Oscillator is above 80, suggesting a retracement.

The resistance level is at 101.50, followed by 102.00 and 102.40.
The support line is at 101.00, followed by 100.50 and 100.00.

usdjpy-h4-2

EURUSD has been oscillating in the range between 1.1180 and 1.1240 since 27th September.

1.1200 is the short term major support line, where providing a stronger support.

This morning the German Unemployment Change was released, rising to 1K, which as weaker than the expected figure of -5K. EURUSD retraced moderately, yet still oscillating in the range.

The 4 hourly Stochastic Oscillator is heading downwards, suggesting a retracement.

The resistance level is at 1.1220, followed by 1.1240, 1.1255 and 1.1270.
The support line is at 1.1200, followed by 1.1180 and 1.1160.

Keep an eye on the German CPI figures (MoM and YoY) for September, to be released at 12:00 GMT. Also the US Q2 GDP final reading, and Goods Trade balance, to be released at 12:30 GMT. As they will likely influence the trend of EURUSD.

eurusd-h4

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