- EUR/CAD has found its resistance after being bullish on the H4 chart.
- The pair is on a bearish correction to find its support.
- The H1 chart is heading towards a flipped level of support.
- Intraday minor charts have been bearish.
EUR/CAD- Technical Analysis- H4 Chart
The chart shows that upon producing a strong bullish reversal pattern, the pair made a move towards the North in a hurry. It produced consecutive six bullish candles. However, the level of 1.47200 has come into play and worked as a level of resistance. It produced an Inverted Hammer. As of writing, the current candle has been bearish as well. If it ends up being a bearish candle, the sellers may look to go short in the pair based on the minor charts. Nevertheless, the buyers will be keen to get a bullish reversal signal at the value areas followed by a breakout at the swing high to go long in the pair.
As long as the simple moving average 30 works as a support, the sellers may not get themselves engaged to go short in the pair based on this chart.
Price Action Analysis- H1 Chart
The chart shows that the price has been making a bearish correction with good momentum. The level of 1.46800 has potential to hold the price as a support. If the level produces a bullish reversal pattern, the buyers may go long in the pair and push the price towards the North again. The H1 buyers may consider 1.47200 as a strong resistance and count in their trade management. A bullish breakout at that level may make the pair remain bullish for some days.
On the other hand, if the price breaches the level of 1.46800, it may continue its bearish correction and head towards the last swing low.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn