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CURRENCIES TECHNICAL ANALYSIS April.9

Euro

 

Buyers failed to move the spot above the 1.2300 hurdle where the pair faced selling rejection last week. This level is reinforced by the 50, 100 and 200 EMAs and buyers had nothing to do, but to retreat. EUR/USD remained in the downward channel on Monday. The spot started a new week around 1.2280 tending to move lower. The resistance resides at 1.2300, the support comes in at 1.2250.

 

We prefer to sell the euro until we see a break above 1.2350. The currency pair is likely to return to the 1.2250 first and if sellers preserve control they could drive the majors to the 1.2200 region.

 

GBP/USD

 

The EMA200 which is located in the 1.4000 area saved buyers from further losses. This line rejected the pound upwards and the major spiked to the 1.4100 hurdle where the spot closed the week. The buying interest remained intact on Monday. Buyers were pressuring the 1.4100 hurdle the first part of the day. The resistance lies at 1.4100, the support comes in at 1.4000.

 

Buyers seem to be going to leave the negative ground. If they succeed, the sterling will regain the level 1.4100 and will move to the mark 1.4150.

 

USD/JPY

 

Despite the Friday's sell-off the US dollar remained on the back foot on Monday. The major is still in the positive ground and stays firm in the near-term upward channel. The US currency is getting support from the 50, 100 and 200 EMAs which are located in the 106.50-106.00 area and do not let the spot to turn to the downside. The resistance resides at 108.00, the support comes in at 107.00.

 

In order to recover some strength, USD/JPY needs to rise back and hold above 107.50. A break above this mark may trigger a move towards 108.00.

 

GPB/JPY

 

The GBP/JPY pair remained in an ascending channel on Monday. The buying pressure around the pound is pushing the spot to fresh highs. The sterling attacked the 151.00 hurdle in the night and continued struggling with it during the night and day trades. The resistance lies at 151.00, the support is at 150.00.

 

The pound will most likely to continue its rally and may advance to 151.50 now. Should buyers retreat amid the Monday’s inactivity the currency pair may decline to 150.00.

 

EUR/JPY

 

The euro was able to advance to 131.50, but lost strength and turned neutral last week. The major remained in a narrow range staying between 131.50 and 131.00 during the Asian and European trades on Monday. The resistance lies at 131.50, the support is at 131.00.

 

The spot is getting support from the 50 and 200 EMAs which lie in the 131.00 area. If buyers stay above this line they will break through the immediate resistance and will drive this market towards 132.50.

 

USD/CAD

 

The downward pressure partially eased on Monday. Sellers did not find any reason to move the spot lower so they decided to take some profits. A weak buying interest pushed the pair to the upper border of the descending channel. The US dollar tested the level 1.2800 in the morning trades and regained this level in the mid-European session. The resistance stands at 1.2900, the support is at 1.2800.

 

It seems unlikely that the pair could break below 1.2700 today or even tomorrow. Buyers may reverse some losses and push the US dollar to the 1.2850 area where the spot will probably face a stiff resistance from the EMA50 and EMA200. If so, these lines will reject the USD/CAD pair towards the 1.2700 handle.

S&P500

 

Buyers failed to sustain gains above 2640. A strong resistance at 2670 rejected the spot downwards. Sellers dragged the price towards 2580 after that, but lost momentum approaching the level. As a result, the price stepped back to the 2610 hurdle. The benchmark continued its recovery on Monday and headed towards 2630 in the morning. The resistance is at 2640, the support stands 2610.

 

We believe that S&P500 may continue to suffer the persistent weakness. In this potential scenario the benchmark may ease to 2550.

 

DAX

 

DAX started a week on a positive note. The index gapped upwards at the open. The price jumped to 12250 and continued its rally afterwards. The benchmark broke above 12300 in the mid-European session and advanced up to 12350 afterwards. The resistance lies at 12400, the support exists at 12300.

 

We believe that buyers will drive the price to the 12400 area in the coming days.

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