- EURCAD bearish pin bar formed at supply zone and resistance trend line - Crude Oil Futures resting at demand zone
The EUR surged over the past few days due to a weak USD while the CAD fell together with oil prices. However, signs of reversal have appeared in an area of value before the major catalyst tomorrow.
In the daily chart, a bearish pin bar is formed in the supply zone and it rejected the resistance trend line. Both the RSI and Stochastic also came off overbought values. Although the RSI and Stochastic are not my primary deciding factors, it is worth considering when both indicators are at extreme levels.
In the Crude Oil Futures daily chart, the price is also resting at the demand zone. This should give the CAD some support if price stays above this area.