theforexportal

EURCAD more room to the upside but heavily overbought

FX:EURCAD   Euro / Canadian Dollar
EURCAD has moved impressively off the 38.2 Fibonacci level at 1.3791 and has put in an impressive Marubozu candle with no wicks on Friday. This is a very strong BULLISH sign but that was last week and sentiment may have shifted over the weekend. Technically a run to 1.43576 is possible being the 200m sma on D1 but with H1 and H4 conditions heavily overbought its hard to recommend a LONG trade from these levels.
We could see a consolidation period next week for this and other EUR pairs but a SHORT trade is possible if the EUR across the board weakens.

Trade idea.
SHORT if the EUR is weak across the board.
No LONG trades from these OB levels.