Technical Analysis – EURCAD below moving averages and mid-Bollinger band in sideways market

EURCAD is currently stuck between the 200-period SMA of 1.5331 and the 1.5127 level, that being the 50.0% Fibonacci retracement of the up leg from the 34-month low of 1.4263 to the 2-year high of 1.5991. Observing the converged and flattened SMAs, they still promote a horizontal mode whilst the short-term oscillators lean towards a negative picture.

The MACD holds slightly in the negative region and below its red signal line, while the RSI is gradually declining towards the 30 mark. The stochastics oscillator, currently bearish is dipping into oversold territory with its blue %K line.

In a negative scenario, immediate support could occur at the 50.0% Fibo of 1.5127 - where the lower Bollinger band also lies - ahead of the 1.5052 floor of the consolidation. Slipping past this important 1.5052 base, further supporting foundations at 1.5014 and 1.4976 could challenge the dive towards the 61.8% Fibo of 1.4926. A push even lower could test the 1.4792 and 1.4720 troughs.

If buyers re-merge and conquer the 1.5269 area - involving the mid-Bollinger band, 50- and 100-period SMAs - the price may then tackle the 200-period SMA resting at the 38.2% Fibo of 1.5331 ahead of the 1.5394 upper Bollinger band. Surpassing this, the upper boundary of the range at 1.5532 and the 23.6% Fibo of 1.5585 overhead may prevent the pair from reaching the 1.5709 and 1.5792 peaks.

Summarizing, the very-short-term picture is neutral-to-bearish and a close either below 1.5052 or above 1.5532 may set the next course. That said the levels near the boundaries would also need to be broken to accelerate the price in the relative direction.

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.