Market NewsTechnical Analysis

EUR/CAD: A Battle between Horizontal Support and the SMA 30

USD/CAD Jobs Report Powell speech
  • EUR/CAD has been choppy on the H4 chart.
  • A horizontal support is in play, but the SMA 30 has been working as a resistance.
  • The H1 chart may get bullish over 1.46300.
  • Intraday minor charts have been choppy in Tokyo session.
EUR/CAD H4 chart
EUR/CAD H4 chart

EUR/CAD- Technical Analysis- H4 chart

The chart shows that the price had multiple bounces at 1.45670. At the last bounce, it produced a bullish engulfing candle and headed towards the North. The simple moving average 30 worked as a resistance. The sellers do not look that confident to drive the price towards the South. A breakout below the horizontal support may drive the price towards the downside with good momentum. The price may find its next support around 1.44700.

On the upside, if the level produces a bullish momentum and ends up making a breakout at the SMA 30, the buyers may keep their eyes on the price action to go long from the value areas. In that case, it may find its next resistance around 1.45500.

EUR/CAD H1 chart
EUR/CAD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has found its support at 1.45900. It had bounced at the level twice. Thus, a breakout at the 1.46300 may be considered as a neckline breakout of a double bottom. A breakout at the neckline may push the price towards the North. The price may find its next resistance around 1.46800.

On the downside, the sellers may wait for the price to make a strong bearish momentum followed by a breakout at the level of 1.45900 to look for short opportunities. A bearish breakout may drive the price towards the level of 1.45600. It means the sellers may struggle to find short opportunities with lucrative risk-reward.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn

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