EUR/CAD at significant crossroads
The common European currency continues to lose value against the Canadian Dollar, and the rate is set to continue to decline in the future. However, the pair is set to find loads of support in the short term.
There are two base scenarios. First the pair might find support in one of the various support levels form 1.4470 to 1.4550 levels. Afterwards it could surge, break the junior descending channel and reveal a more dominant medium term pattern.
The second scenario would consist of the already drawn junior channel down pattern holding its ground and breaking through the various support levels until the rate reaches below the 1.44 mark.
There are two base scenarios. First the pair might find support in one of the various support levels form 1.4470 to 1.4550 levels. Afterwards it could surge, break the junior descending channel and reveal a more dominant medium term pattern.
The second scenario would consist of the already drawn junior channel down pattern holding its ground and breaking through the various support levels until the rate reaches below the 1.44 mark.
After the high volatility experienced in the previous two weeks, the EUR/CAD currency pair’s technical charts need to be completely redrawn. One can observe that the pair has revealed a massive scale ascending channel pattern, the lower trend line of which caused the recent rebounds.
Meanwhile, most recently the pair has struggled against the upper trend line of a junior pattern, which has been strengthened by other various resistance levels in the range from 1.4750 to 1.4600.
However, the cluster has large free ranges above and below it, which means that one needs to wait and act, when the pair breaks free from the cluster.