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Euro / Canadian Dollar
Short

EURCAD → A change in sentiment to bearish. MA-200 breakdown

By RLinda
Updated
EURCAD breaks trend support and spills to the downside as funds increase long positions on the Canadian dollar, whose rise is directly linked to the fall in DXY.

snapshot

On D1, we see the currency pair returning to the range (1.5040 resistance) after a deep false breakdown. Accordingly, after the short-squeeze the market has potential - liquidity located at the bottom. Accordingly, in the nearest future the market may test 1.497, then 1.493.
BUT! On H4 there is a strong zone of 1.498 ahead. There is a high probability of a false breakdown and correction before a further fall, because below this zone there is a huge pool of liquidity, which will not let the price pass the first time.

Resistance levels: 1.506, 1.5085
Support levels: 1.498, 1.49

The 200&50 SMAs act as resistance, which indicates the current market sentiment. If the market is weak, a correction may not happen, bears may break the level quite quickly. In any case, it is worth watching the price reaction at 1.498

Rate, share your opinion and questions, let's discuss what's going on with ★ EURCAD ;)


Regards R. Linda!
Trade active
Attempt to break through the support zone
Trade active
A retest of the liquidity zone and an attempt to consolidate below 1.5000 is forming
If the price starts to update local lows, we should get ready for a decline
Trade closed: target reached
First target achieved!
Ascending ChannelChart PatternsconsolidationFibonacci RetracementFLATFundamental AnalysismovingavarageSymmetrical TriangleTrend AnalysisTrend Line BreakZigzag
RLinda
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