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GBPCAD & EURJPY Outlook

The GBPCAD pair has seen a pause in the selling that started in March. This has allowed the pair to retrace higher to the 1.6800 level. The GBP has shown signs of strength over the last week of trading but as we can see from the chart this has yet to spark any positive signals on the daily timeframe. Support for the pair is found just below the current price at 1.6760. A loss of this area is not significant in itself but a successful retest of this level may signal the market is ready to find direction. The next support is found at 1.6565 which is the August low. A loss of this level suggests selling will resume and 1.6400 comes into focus.

Resistance for the pair sits just north of 1.6950. This area guards the path to 1.7000 which buyers will need to take to have any hope of turning a profit. A move up to 1.7060 may be the easy pair with this level showing strong supportive and resistive interactions in the past. A close above this level may see a test of the falling resistance trend line and the 1.7290 level ahead of 1.7300.

 

EURJPY

The EURJPY pair has also found support and moved higher from its august low. The drop got to 124.900 before buyers stepped in ahead of the May low at 124.600. Price is currently trading at 128.200 and support is found close by at 127.725. A drop under this level would give traders an opportunity to reengage with the 127.000 area while support at 126.675 remains key to any move higher or lower.

Resistance is quite strong at 128.500 in relative terms but with summer time market conditions of low liquidity price can get pushed through key levels. Above this level 129.000 comes into play followed by 129.456 as a minor swing point. A break above 130.000 changes the look of the chart with 130.385 and 131.000 the final positions shorts have to defend before the down trend line is broken.

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