USDCAD TECHS: Heading North

• RES 4: 121.65 2.618 proj of the Feb 22 - 26 - 29 price swing
• RES 3: 121.19 2.382 proj of the Feb 22 - 26 - 29 price swing
• RES 2: 120.65 High Dec 27 and the bull trigger
• RES 1: 120.05 High Mar 7
• PRICE: 119.35 @ Close Mar 12
• SUP 1: 118.22 20-day EMA
• SUP 2: 116.52 Low Feb 29
• SUP 3: 116.15 Low Feb 22 and the bear trigger
• SUP 4: 116.00 Round number support

BTP futures are holding on to the bulk of last week’s gains that resulted in a break of key short-term resistance at 118.81, the Jan 30 high. The clear break of this hurdle highlights a bullish reversal and signals scope for a continuation higher near-term. This has opened 120.65, the Dec 27 high and bull trigger. Clearance of this level would confirm a resumption of the medium-term uptrend. Initial firm support lies at 118.22, the 20-day EMA.

• RES 4: 165.00 Round number resistance
• RES 3: 164.30 High Nov 16 and a key medium-term resistance
• RES 2: 163.72 High Feb 26 and the bull trigger
• RES 1: 161.88/162.96 20-day EMA / High Mar 6
• PRICE: 161.38 @ 07:01 GMT Mar 13
• SUP 1: 160.63/22 Trendline drawn from Dec 7 low / Low Mar 11
• SUP 2: 159.47 Low Feb 8
• SUP 3: 158.92 Low Feb 7
• SUP 4: 158.08 Low Feb 1 and a key support

The recent move down in EURJPY appears to be a correction. The pair has breached the 20- and 50-day EMAs and is trading closer to its recent lows. Attention is on 160.63, trendline support drawn from the Dec 7 low. It has been pierced but remains intact for now. A break of the line would strengthen a bearish theme and signal scope for a deeper retracement towards 158.92, the Feb 7 low. Initial resistance to watch is 161.88, the 20-day EMA.