Top Story

EURCAD bearish breakdown ahead of ECB

Short-term technical outlook on EUR/CAD



click to enlarge charts

Key Levels (1 to 3 days)

Intermediate resistance: 1.4530

Pivot (key resistance): 1.4580

Supports: 1.4450 & 1.4410/4380

Next resistance: 1.4700

Directional Bias (1 to 3 days)

Bearish bias below 1.4580 key short-term pivotal resistance for a further potential downleg to target the next near-term supports at 1.4450 and 1.4410/4380

On the other hand, a clearance with an hourly close above 1.4580 kickstarts a corrective rebound towards the key medium-term resistance at 1.4700,

Key elements

  • The EUR/CAD cross pair has staged a bearish breakdown below a former major ascending support in place since Aug 2012 low now turns pull-back resistance t 1.4580 (see weekly chart).
  • In the short to medium-term, the EUR/CAD is evolving within a minor descending channel in place since 26 Aug 2019 high with the upper boundary of the descending channel acting as at resistance at 1.4580 that confluences with the 23.6% Fibonacci retracement of the recent decline from 26 Aug 2019 high to yesterday, 10 Sep 2019 low of 1.4500.
  • The next significant near-term support rests at 1.4410/4380 which is defined by the lower boundary of the minor descending channel and a Fibonacci projection cluster.
  • Short-term downside momentum of price action remains intact as indicated by the 1-hour RSI oscillator where it still has room to manoeuvre to the downside before it reaches an extreme oversold level of 19.

Charts are from eSignal


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.