EUR/CAD 4H Chart: Pressured by 200-hour SMA
The single European currency has been trading sideways against the Canadian Dollar since January 8. The 200-hour simple moving average was providing resistance at 1.5266.
The exchange rate is currently trading near the bottom border of an ascending channel at 1.5232.
If the support level formed by the lower boundary of the channel pattern holds, the currency exchange rate could aim for a resistance cluster at 1.5405 within this session.
However, if the price breaks the channel pattern, the decline of the EUR/CAD pair will continue during this week trading sessions.
The exchange rate is currently trading near the bottom border of an ascending channel at 1.5232.
If the support level formed by the lower boundary of the channel pattern holds, the currency exchange rate could aim for a resistance cluster at 1.5405 within this session.
However, if the price breaks the channel pattern, the decline of the EUR/CAD pair will continue during this week trading sessions.
Comment:
The single European currency has continued to edge lower against the Canadian Dollar. The exchange rate has depreciated about 215 base points during the last week.
The currency pair tested the upper boundary of a descending channel pattern at 1.5194 on January 30 and followed by a downside movement.
The short-term target for bearish traders will be near a support level formed by the lower boundary of a dominant ascending channel at 1.4933.
A possible upside reversal could follow from the support level as mentioned above.
The currency pair tested the upper boundary of a descending channel pattern at 1.5194 on January 30 and followed by a downside movement.
The short-term target for bearish traders will be near a support level formed by the lower boundary of a dominant ascending channel at 1.4933.
A possible upside reversal could follow from the support level as mentioned above.
Comment:
The common European currency has appreciated about 1.10% in values against the Canadian Dollar since February 4. The currency pair tested the upper boundary of a descending channel pattern at 1.5120.
As for the near future, it is likely that the exchange rate continues its movement in the descending channel pattern. The potential downside target will be near the bottom border of a dominant ascending channel at 1.4945.
If the support level formed by the lower boundary of the dominant channel holds, a bullish sentiment could be introduced in the shorter term.
As for the near future, it is likely that the exchange rate continues its movement in the descending channel pattern. The potential downside target will be near the bottom border of a dominant ascending channel at 1.4945.
If the support level formed by the lower boundary of the dominant channel holds, a bullish sentiment could be introduced in the shorter term.
Comment:
During the last week, the single European currency has depreciated about 0.92% against the Canadian Dollar. This decline was stopped by the bottom border of a dominant ascending channel at 1.4916.
Everything being equal, it is likely that the currency exchange rate continues its decline in a junior descending channel pattern during the following trading sessions. The potential downside target will be near a support cluster formed by the weekly and the monthly PPs at 1.4832.
However, it is important to note that the weekly S1 at 1.4896 could provide support for the EUR/CAD pair in the short-term.
Everything being equal, it is likely that the currency exchange rate continues its decline in a junior descending channel pattern during the following trading sessions. The potential downside target will be near a support cluster formed by the weekly and the monthly PPs at 1.4832.
However, it is important to note that the weekly S1 at 1.4896 could provide support for the EUR/CAD pair in the short-term.
Everything being equal, it is likely that the junior descending channel could guide the exchange rate towards a swing low of 1.4900 during the following trading session.
Although, a support level formed by a traditional weekly pivot point near the 1.4968 area could hinder such movement in the short-term.