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EUR/CAD: Wait Patiently for the Next Breakout to Find a Solid Direction

  • EUR/CAD has been having a bullish correction.
  • Traders are to be watchful on the price action around the SMA 30.
  • The H1 chart looks choppy looking for a direction.
  • Intraday minor charts have been bullish.
EUR/CAD H4 chart
EUR/CAD H4 chart

EUR/CAD- Technical Analysis- H4 chart

The chart shows that the price made a strong bearish move earlier. It found its support around 1.46250. As of writing, the pair is traded around the level. The simple moving average 30 has been chasing the price. Since the horizontal support looks strong, so the chart may end up making a bullish breakout at the SMA 30. If that happens, the pair may change its direction and remain bullish for some days.

On the other hand, if the chart produces a bearish reversal pattern at the SMA 30’s resistance and makes a bearish breakout at 1.46250, the sellers may drive the price towards the South. The pair may find its next support around 1.44600.

EUR/CAD H1 chart
EUR/CAD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been trapped within a flat bottom channel. Traders are to wait for the price to make a breakout either at the resistance or at the support to find a solid direction. As of writing, the pair is traded around the support. However, it has been gradually heading towards the North mainly by the minor charts. A breakout above the price may find its next resistance around 1.47000.

On the contrary, a breakout at the support may drive the price towards the downside. In that case, the price may find its support around 1.45850.

Considering both charts, it seems that traders are to wait for the pair to give them a solid direction. It is to find a direction, otherwise, it may not be lucrative for traders to make any trading decisions as things stand with the pair right now.

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

Contact and follow Tareq on Twitter: @tareqfpn

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