EUR/CAD: Bear Has Made a Long Move, What Next?

• EUR/CAD trades around the Simple Moving Average 30.
• The sellers may keep their eyes on the pair to go short.
• The H1 chart may produce a double top.
• Intraday price action has been bullish.

EUR/CAD- Technical Analysis- H4 Chart

The H4 chart shows that the price has been heading towards the downside with moderate momentum. It seems to have found its support around 1.43300. At the second bounce, it produced a bullish inside bar. However, the price has headed towards the North. As of writing, the pair trades around the SMA 30. The sellers may keep their eyes on the pair to go short upon having a bearish reversal candle. The price may make a new lower low and find its support around 1.42800.On the upside, it seems that the buyers may not have wait that long to get long opportunities. If the price breaches the SMA 30 and confirms the breakout, the buyers may go long in the pair and push the price towards the North. The price may find its next resistance around 1.45350.

Price Action Analysis- H1 Chart

The chart shows that the price seems to have found its support around 1.43000 and made a bullish move. It then came down for a bearish correction and headed towards the upside again. As of writing, the pair trades around the last swing high. A breakout above may attract the buyers to go long in the pair and push it towards the upside. The price may find its next resistance around 1.44550.

On the contrary, if the price produces a bearish reversal candle around 1.44000, the sellers may drive the price towards the last swing low at 1.43000. A breakout below that level may attract more sellers and the pair may get bearish for a while. In that case, the pair may find its support around 1.42800, which seems to be the support at the H4 chart as well.

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

Contact and follow Tareq on Twitter: @tareqfpn