EUR/CAD daily chart, watch price action at trend-line

Watch for Rejections at Support in EUR/CAD and NZD/JPY -

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EUR/CAD Set-up

The strong decline in EUR/CAD is bringing into play a steady trend-line dating back to February 2017. In conjunction with the trend-line is the 200-day MA, adding weight to its importance. It is currently sneaking below the line at the time of this writing, but should we see a forceful rejection (ideally today), then it may offer an attractive spot to pick up a beaten down pair at support.

In the event of a strong rejection, stops upon entry should be placed sufficiently below the low of the rejection bar. A head is a trend-line off the March high to be mindful of, but with the broader support in place a move higher should find EUR/CAD overcoming it if the trade is to work out. 15462 & 15718 are the first price levels to contend with and will be initial targets. Longer-term, if momentum can pick up then this recent decline may turn out to be a pullback within the broader trend higher since February of last year.

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EUR/CAD Daily Chart (Watch price action at trend-line)

NZD/JPY Set-up

NZD/JPY is currently in the process of testing significant horizontal support extending back to a gap in late-2016. There have been strong rallies posted off the mid-75s, one in April 2017 and the other just this past March. A strong rejection (i.e. - key reversal, bullish engulfing candle) could have a counter-move trade set-up in play. Stops on longs will be best placed below the swing-low created, should one be created. The target will be the trend-line off the January peak.

In the event of a breakdown below support, look for continuation of the recent slide. We'll look at such a situation should it become relevant in the weekly webinars held on Wednesday and Friday at 9 GMT time.

NZD/JPY Daily Chart (Strong Price Support)

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---Written by Paul Robinson, Market Analyst

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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