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EUR/CAD Caught Between Two Levels

April 10, 2019 at 8:30 by Dorin Rosu

The advance of the euro vs. Canadian dollar is postponed by the indecision that came to be after the pair fell between the lines of two significant levels.

Long-term perspective

The retreat that started on January 2, 2019, from 1.5640 brought the price under the major resistance level of 1.5200, which is also a psychological level. It then continued until hitting 1.4900 and made a low at 1.4878 on February 25, 2019. From there it rallied and revisited 1.5200 writing two highs around this level. The two peaks could easily be identified as a double top, which is not an inspiring conclusion since such a pattern should have been found at the end of a strong ascending move. It somehow played-out, and afterwards the price dropped to 1.49 again, being rejected by the strong support zone. Now, the fact that the impetus given by 1.5200 was stopped by 1.4900 is a telling sign that the bears are not as powerful as they would like to seem. Just in case, there is one last standing for the bulls, at 1.4741, were any fall should be met with a lot of bullish optimism, since that would be an excellent zone for anyone who seeks a buying opportunity.

Short-term perspective

From 1.4910 the price is in an ascending move that looks like as if it ended at 1.5047, but shows signs of continuation after bouncing off from 1.4968. As long 1.4968 continues to be confirmed as support the profile remains bullish, and the same expectations are valid for 1.5000. The conquer of 1.5047 leads the way to 1.5080. This scenario is also backed by the fundamentally driven weakening of the Canadian dollar.

Levels to keep an eye on:

D1: 1.4741 1.4900 1.5200 1.5372 1.5550
H1: 1.4910 1.4968 1.5047 1.5080 1.5112

If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.

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