Market NewsTechnical Analysis

EUR/CAD: Buyers are to Wait and Keep an Eye at a Confluence Level

  • EUR/CAD has been having a bearish correction on the H4 chart.
  • The pair is approaching at a massive confluence support.
  • The H1 chart looks good for the bear.
  • Intraday minor charts have been choppy so far.
EUR/CAD H4 chart
EUR/CAD H4 chart

EUR/CAD- Technical Analysis- H4 chart

The chart shows that the price has been up trending by obeying a bullish trend line. At the last bounce, it consolidated for a while at the trend line’s support and produced a bullish engulfing candle. It then continued its bullish move. The simple moving average 30 has been working as a support as well. Thus, the buyers may keep their eyes on the pair to look for short opportunities. As of writing, the price has been having a bearish correction. A bullish reversal pattern at the flipped horizontal support at 1.47815 may generate bullish momentum and push the price towards the upside.

The price may find a confluence support as well since the trend line and the SMA may align with the horizontal support.

EUR/CAD H1 chart
EUR/CAD H1 chart

Price Action Analysis- H1 Chart

The H1 chart shows that the pair has found its horizontal support at 1.48300. It consolidated there for a while and made a move towards the North. The price has been heading towards the support again. A breach at the support followed by a bearish reversal pattern may drive the price towards the South further. The price may find its support around 1.47815.

On the contrary, the horizontal support may hold the price and push it towards the upside. If that happens, the buyers may consider it as a double bottom support if the price breaches 1.48600.

Considering both charts, it seems that the bull has a strong stage to make a move. The question is whether the H4 chart produces that bullish reversal pattern at the value area. Traders must wait and see what the price does at that significant area.

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

Contact and follow Tareq on Twitter: @tareqfpn

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