EUR/CAD is struggling to interrupt by its transferring common resistance.
May this preserve the pair caught in its downtrend earlier than it runs into the highest of the sample?
Let’s try the each day time-frame:
EUR/CAD Every day Foreign exchange Chart by TradingView
The euro has seen combined value motion thus far this week, performing as a regional secure haven at occasions whereas additionally buying and selling like a threat forex towards different counterparts.
The Canadian greenback has not discovered a lot traction both, with the oil-linked forex exhibiting uneven strikes regardless of firmer oil costs and an enchancment in general threat sentiment.
With Euro Space PMI stories due in the present day, may EUR/CAD lastly see extra directional value motion?
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EUR/CAD has been printing decrease highs and decrease lows since October, although value motion has leaned barely extra bullish thus far this 12 months.
Downside is, the pair has struggled to interrupt above the each day 100 SMA, a degree that would appeal to renewed promoting strain and lengthen the downtrend even earlier than value reaches descending channel resistance close to the 1.6250 space.
Look ahead to lengthy bearish wicks and pink candlesticks round this zone, which may drag EUR/CAD again towards the 1.6100 prior inflection level, if not the 1.6000 main psychological deal with.
Alternatively, sustained inexperienced candlesticks and a clear maintain above the 100 SMA may level to stronger bullish demand, opening the door for a transfer towards the R1 space close to 1.6262, nearer to the highest of the descending channel.
Whichever bias you find yourself buying and selling, don’t neglect to apply correct threat administration and keep conscious of top-tier catalysts that would affect general market sentiment.
Disclaimer:
Please remember that the technical evaluation content material supplied herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one side of a complete buying and selling technique. The technical setups mentioned are meant to spotlight potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling selections, threat administration methods, and their ensuing outcomes are the only accountability of every particular person dealer. Please commerce responsibly.
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