EUR/CAD: Bear Has a Strong Stage, a Support is in Play

• EUR/CAD has been choppy on the H4 chart trading around a support.
• The simple moving average 30 has been working as its resistance.
• The H1 chart looks bearish breaching today’s low.
• Intraday minor charts have been bearish.

EUR/CAD- Technical Analysis- H4 chart

The chart shows that the price has been caught within a horizontal support and the simple moving average 30. At the last rejection, it produced an inverted hammer. As of writing, the pair has been bearish on the current H4 candle. However, the sellers based on this chart may wait for the price to make a breach at the support 1.48680. The price may find its its next support around 1.48000.

On the contrary, if the level produces a bullish reversal pattern at the support, the buyers may look to go long in the pair above the SMA 30’s resistance. The price may find its next resistance around 1.50000.

Price Action Analysis- H1 Chart

The chart shows that the price has been bearish upon having a rejection at a resistance zone. At the last rejection, it produced a bearish engulfing candle. Since then, it has been heading towards the South with good momentum. On its way, it has made a breakout at 1.49000. As of writing, the pair is traded below the level. The sellers may wait for the price to make a bullish correction and produce a bearish reversal signal at the flipped resistance. If that happens, the sellers may go short and drive the price towards the last swing low at 1.48680.

On the other hand, if the price goes back above the horizontal resistance, the buyers may look to go long in the pair. Considering the chart, the price may not find enough space to travel in case of a bullish move since the resistance zone looks strong.

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

Contact and follow Tareq on Twitter: @tareqfpn