Technical Analysis – EURCAD imprisoned in a very narrow range



EURCAD has been trapped in an extremely narrow range between 1.4500 and 1.4400 for a week now. The 50-period moving average (MA) on the four-hour chart is halting any advances, while the lower Bollinger band is preventing any declines. 

With volatility so low, the momentum oscillators cannot provide any directional signals. Both the RSI and the MACD are stuck near their neutral levels. 

If the bulls get back in the driver’s seat and manage to push above the 50-period MA, their next target might be the ceiling of this range at 1.4500. A successful violation would subsequently turn the focus to the 1.4560 zone, marked by the February 10 high. 

In the negative scenario, in case sellers can push beneath the 1.4400 level and the lower Bollinger band, the next stop might be the nearby low of 1.4370. Even lower, the 200-period MA currently at 1.4350 might give the bears some pause, before a tougher battle plays out near 1.4310

Overall, volatility has dried up completely. A decisive break either above 1.4500 or below 1.4400 is required to re-energize the pair. 

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