EUR/CAD at risk of a major bearish breakdown as ECB looms
Kelvin Wong July 25, 2019 5:28 AM
Watch EUR/CAD downside trigger level of 1.4600
Short-term technical outlook on EUR/CAD (Thurs 25 Jul)
click to enlarge charts
- The EUR/CAD cross pair has continued to inch lower by -9.58% from its major range resistance at 1.6105. Right now, it is testing a major ascending trendline in pace since Aug 2012 low now acting as a support at 1.4600.
- The minor impulsive down move sequence in place since 01 Jun 2019 high of 1.5161 remains intact with key short-term resistance at 1.4730 (also 23.6% Fibonacci retracement of the entire decline from 01 Jun 2019 high to 16 Jul 2019 low). (see 4-hour chart)
- Shor-term momentum remains negative as indicated by the 4-hour RSI oscillator where it has broken below a corresponding support at the 44 level.
- The next significant near-term support rests at 1.4500 which is defined by the lower boundary of the minor descending channel from 01 Jun 2019 high and a Fibonacci projection cluster.
Key Levels (1 to 3 days)
Intermediate resistance: 1.4675
Pivot (key resistance): 1.4730
Supports: 1.4600 & 1.4500
Next resistance: 1.4875
If the 1.4730 key short-term pivotal resistance is not surpassed and a break below 1.4600 reinforces the continuation of the minor impulsive down move to target the next support at 1.4500 in the first step.
However, a clearance with an hourly close above 1.4730 negates the bearish tone to open up scope for a corrective rebound towards the 1.4875 resistance (also the 50% Fibonacci retracement of the entire decline from 01 Jun 2019 high to 16 Jul 2019 low).
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.