- EUR/CAD trades around the simple moving average 30 on the H4 chart.
- Earlier H4 candle made a bearish breakout at the SMA 30.
- The H1 chart looks bearish.
- Intraday minor charts are having bullish correction.
EUR/CAD- Technical Analysis-H4 Chart
The H4 chart shows that the pair produced a strong bearish candle penetrating the SMA 30. As of writing, the current candle has been bullish. It means the pair is having a bullish correction. If the candle closes within the SMA 30, the sellers will be eagerly waiting for the chart to produce a bearish reversal candle to go short in the pair. The price may find its next support around 1.42320. A breakout below that level may make the pair very bearish and drive the price towards the last swing low.
On the contrary, if the current candle closes above the SMA 30, the scenario will be changes. Buyers then wait for the price to confirm the breakout and produce a bullish reversal candle right at the SMA 30’s support to go long in the pair. The price may find its resistance around 1.45000.
Price Action Analysis- H1 Chart
The chart shows that the price had a bounce at 1.43775 by producing a spinning top. As of writing, the current candle has been bullish. If the candle closes above the spinning top’s higher high, the buyers may push the price towards the North for at least one more candle. However, considering the price action for the last 4 candles, it seems that the price may find its resistance. The sellers may wait for the chart to produce a bearish reversal candle to go short in the pair. The price may breach the level of 1.43775 and head towards the South. The level of 1.43400 may hold the price as a level of support.
Considering both charts, it seems that traders are to be very watchful before making any trading decision here. As things stand, the H1 chart may play a vital role to determine its next direction.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn