Don’t look now, however EUR/CAD may very well be gearing up for a reversal from its downtrend!
Can the pair break above this neckline resistance or will we see a continuation of the slide?
Check out these inflection factors on the 4-hour timeframe.
EUR/CAD 4-hour Foreign exchange Chart by TradingView
The oil-related Canadian greenback has been below some promoting stress, as merchants proceed to ease up on provide jitters stemming from the Venezuela disaster that blew up over the weekend.
In the meantime, knowledge factors from the eurozone have been blended, as flash CPI readings have fallen wanting estimates whereas remaining providers sector PMI readings have proven inexperienced shoots.
Will EUR/CAD break or bounce from this ceiling?
Keep in mind that directional biases and volatility circumstances in market worth are sometimes pushed by fundamentals. In case you haven’t but completed your fundie homework on the euro and the Canadian greenback, then it’s time to take a look at the financial calendar and keep up to date on every day basic information!
The pair is making an attempt to tug increased from its drop late final yr, forming a double backside or traditional reversal sample with the neckline across the 1.6200 main psychological mark.
Preserve a watch out for candlesticks suggesting that the resistance might maintain, presumably sending EUR/CAD again right down to close by assist ranges at R1 (1.6130) then the pivot level (1.6100) which traces up with a significant psychological mark.
On the flip aspect, lengthy inexperienced candles closing above R3 (1.6210) might counsel {that a} bullish breakout is materializing, presumably setting the stage for additional rallies till R4 (1.6240) then R5 (1.6280).
Whichever bias you find yourself buying and selling, don’t neglect to observe correct danger administration and keep conscious of top-tier catalysts that would affect general market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material offered herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one side of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. In the end, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
