EUR/CAD Is Retracing

The EUR/CAD trend is obviously very bearish – the pair has been moving to the downside ever since it bounced off from 1.5585. That said, the pair finally found some support at 1.4800 and formed several signals for a likely retracement, namely a double bottom at the aforementioned support level, as well as a hammer candlestick on the one-hour time-frame, and several spinning top candlesticks on the four-hour time-frame. Currently the pair is testing the resistance at 1.4925, which coincides with the (MA)89 indicator on the one-hour time-frame. It has formed similar candlesticks at that level too, so whether it will be able to break out above it too is unclear. If it does it will probably continue rising towards 1.5000. If it bounces off from it the pair may fall back down towards 1.4800.

EUR/CAD Is Testing 1.5050

EUR/CAD has been moving to the downside for the past two weeks and finally found support at the (MA)89 indicator on the weekly time-frame, which is currently at 1.5050. For now the pair continues testing that support, but considering that it has remained above that indicator for the past year whether it will be able to break out below it remains to be seen. If it does, the move to the downside will likely continue and next target will probably be at 1.4840 – 1.4800. If it bounces off from it again, as it has done many times over the past year, it will likely continue rising towards the last high, which is at 1.5580.

EUR/CAD Will Likely Continue Falling

EUR/CAD briefly moved to the upside today after several days of gradually moving to the downside and bouncing off from the support at 1.5315, but the pair quickly encountered a resistance at 1.5455 and bounced off from it as well. What is more, in the process of doing so the pair formed a hanging man candlestick and a shooting star candlestick, both on the four-hour time-frame, which is a very good signal for a further move to the downside. Currently the pair is testing the support at 1.5315 once again and considering the aforementioned signal it is more likely to break out below that level than to form a double bottom.

If it does break out below that support next target will probably be at 1.5120, which is the last low.