- EUR/CAD has made a significant bearish breakout at the SMA 30’s support.
- The pair has found its horizontal resistance and produced a bearish engulfing candle.
- The H1 chart looks bearish having bullish correction.
EUR/CAD- Technical Analysis- H4 chart
The chart shows that the price has had a rejection around 1.50400 and made a bearish move. It breached the simple moving average 30’s support upon producing a bearish engulfing candle at 1.49780. As of writing, the pair trades below the SMA 30. Thus, the sellers may keep their eyes on the pair to go short. The price may find its next support around 1.48000.
On the contrary, if the price breaches the SMA 30 and confirms the breakout, the buyers may look to go long in the pair upon having a bullish reversal pattern at the value areas. In that case, the price may find its resistance around 1.50400 again.
Price Action Analysis- H1 Chart
The chart shows that the pair has been down trending by obeying a trend line. It has had a bounce at 1.49000 earlier and made a bullish correction. The chart has found its horizontal resistance around 1.49200 and has been heading towards the South again. The sellers on the minor charts may consider taking profit out at this level. Thus, the pair may consolidate around this level. A breakout below the level may drive the price towards the downside with good momentum. The price may find its support around 1.48500.
On the upside, if the chart produces a bullish reversal pattern and ends up making a breakout at the trend line’s resistance, the buyers may look to go long in the pair and push it towards the level of 1.49850.
Considering both charts, it seems that the bear has an edge here. Notably, on the H4 chart, it looks good for the sellers. Thus, the pair may continue its bearish move and head towards to find its next support.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn