EUR/CAD is testing a significant assist zone after falling sharply earlier this month!
Suppose the pair is poised to increase a longer-term uptrend?
Right here’s what we’re seeing on the 4-hour time-frame:
EUR/CAD 4-hour Foreign exchange Chart by TradingView
Political and financial uncertainty in France restricted the demand for the euro earlier this week, dragging the frequent forex decrease towards its main counterparts.
On the flip facet, the Canadian greenback is getting some assist from a restoration in U.S. greenback demand and better crude oil costs.
Do not forget that directional biases and volatility situations in market value are sometimes pushed by fundamentals. In the event you haven’t but executed your homework on the euro and the Canadian greenback, then it’s time to take a look at the financial calendar and keep up to date on each day elementary information!
EUR/CAD, which has been printing greater highs and better lows since August, lately turned decrease from the 1.6400 psychological deal with and is now hovering close to the 1.6225 inflection level.
Word that the pair’s present ranges additionally align with each the 200 SMA and the decrease fringe of its ascending channel sample.
If we begin seeing inexperienced candlesticks and regular demand above 1.6250, pattern followers might bounce again in and drive costs towards the 1.6400 highs and even recent 2025 highs.
But when this October slide extends, the pair might slip underneath the 1.6200 psychological mark and threaten a break under pattern assist. In that case, EUR/CAD would possibly revisit earlier areas of curiosity round 1.6100 and even 1.6000.
Whichever bias you find yourself buying and selling, don’t overlook to apply correct danger administration and keep conscious of top-tier catalysts that might affect total market sentiment!
Disclaimer:
Please bear in mind that the technical evaluation content material offered 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 facet 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. In the end, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
