Featured Trade EURCAD may resume its medium term up move cycle
EUR/CAD may resume its medium-term bullish impulsive up move cycle.
Share this:
Short-term technical outlook on EUR/CAD (Fri 11 Jan)
Key elements
- The EUR/CAD has staged a pull-back of 580 pips from its 02 Jan 2019 high of 1.5790. The pull-back has managed to stall right at the medium-term ascending trendline support in place since 24 Oct 2018 low of 1.4777 and formed a daily “Bullish Piercing” reversal candlestick pattern on 09 Jan 2019. These observations suggest that the medium-term up move cycle from 03 Oct 2018 low remains intact within a longer-term major bearish “Ascending Wedge’ corrective range configuration in place since Aug 2012 low of 1.2130 (see daily chart).
- After it hit a high of 1.5305 on 10 Jan 2019 (also coincides with the minor swing high areas of 04/07 Jan 2019, the pair has started to pull-back to print a low of 1.5201 seen in yesterday, 10 Jan U.S. session. The on-going pull-back in price action has reached 61.8% Fibonacci retracement of the recent push up from 09 Jan 2019 low of 1.5415 to 10 Jan 2019 high. In addition, the hourly Stochastic oscillator has traced out a bullish divergence signal at its oversold region. These observations suggest that the downside momentum of the recent slide/pull-back has started to wane (see 1 hour chart).
- The next significant near-term resistance stands at 1.5370/5400 which is defined by the former minor range support from 20 Dec 2018/03 Jan 2019 and a Fibonacci cluster (38.2% retracement of the minor pull-back from 02 Jan 2019 high to 09 Jan 2019 low & 1.236 expansion of the recent push up from 09 Jan 2019 low to 10 Jan 2019 minor high projected from 10 Jan 2019, U.S. session low).
Key Levels (1 to 3 days)
Intermediate support: 1.5210
Pivot (key support): 1.5145/30
Resistances: 1.5310 & 1.5370/5400
Next support: 1.4760
Conclusion
If the 1.5145/30 pivotal support manages to hold, the EUR/CAD is likely to resume its potential impulsive upleg at least in the short-term to retest 1.5310 before targeting the near-term resistance of 1.5370/5400.
On the other hand, a break below 1.5145/30 negates the bullish tone for a slide back towards the 03 Oct 2018 medium-term swing low of 1.4760.
Charts are from eSignal
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
AUD/USD outlook: Aussie slips despite hawkish RBA ahead of key data
The AUD/USD was unable to benefit from the Reserve Bank of Australia’s 25-basis-point rate hike overnight. The RBA lifted the cash rate to 4.60%, in line with expectations. However, the Australian dollar weakened following the decision, with much of the Bank’s hawkish stance seemingly priced in ahead of the announcement. The US dollar has also remained largely supported following the recent turmoil in the bond markets.
Canadian Dollar Technical Outlook: USD/CAD Seven-Day Rally Tests Major Resistance 9 29 2026
USD/CAD is pressing into a major technical barrier after an extended advance, raising the risk for price inflection as momentum stretches.
RBA delivers 25bp hike, Bullock now the main event
The RBA delivered the expected 25bp hike, but Bullock’s press conference now looms as the bigger volatility risk for AUD/USD and the ASX 200.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.