Technical Analysis – EURCAD bounces on moving averages bullish cross; neutral bias in near term

EURCAD has been losing ground over the last four days but its sideways move since the end of August remains intact, keeping the short- and medium-term pictures neutral.  The price is currently hovering near the 20- and 40-day simple moving averages (SMAs) which try to complete a bullish cross.

According to the MACD, the momentum in the price could remain weak as the indicator softens near its red trigger line. The RSI seems to be turning slightly higher, though, it is still relatively close to its 50 threshold. Yet, positive corrections cannot be excluded as long as the price remains above its moving averages.

A reversal to the upside could stall at the upper surface of the Ichimoku cloud at 1.4610. Further above, the 23.6% Fibonacci retracement level of the downward wave from 1.5640 to 1.4410 at 1.4705 and the 1.4720 hurdle could also provide resistance. More gains could see a pause at 1.4770 and then at 1.4860, while above the latter the price could hit a significant obstacle around the 38.2% Fibo of 1.4880.

In the negative scenario, where the negative run in the price extends below the moving averages, immediate support could be found within the 1.4410 – 1.4450 area. Below that, the pair could reach the next psychological levels of 1.4400, and 1.4300, continuing the long-term bearish structure.

Summarizing, EURCAD holds a neutral profile both in the short and medium-term timeframes and a negative outlook in the long-term.

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.