Is EUR/CAD Set To Recover Further?
JFD Team | May 17, 2021 07:53AM ET
EUR/CAD has been in a recovery mode since last Wednesday, when it hit support at 1.4582. At the time of writing, it looks to be approaching the peak of May 11, at 1.4750, but we would like to see a clear break above that hurdle before we start examining a short-term bullish reversal, and thereby the case of further advances.
A break above that hurdle could quickly bring into play the 1.4785 zone, marked by the high of May 7, the break of which could set the stage for extensions towards the 1.4840 hurdle, which provided resistance on May 3 and 4. If that barrier is not able to stop the bulls either, then we may experience advances towards the inside swing low of Apr. 9, at 1.4895.
Shifting attention to our short-term oscillators, we see that the RSI rebounded again from near its 50 line, while the MACD, already above its trigger line, has just poked its nose above its zero line. What’s more, there is positive divergence between both indicators and the price action. This suggests that the rate may have started picking up positive momentum which increases the chances for the latest recovery to continue for a while more.
Now, in case the bears end up stronger than the bulls, we may see a pullback back below the 1.4665 support, something that may open the path towards the low of last Wednesday, at 1.4582. However, in order to start examining whether the prior downtrend has resumed, we would like to see a clear dip below that obstacle. This would confirm a forthcoming lower low and may encourage declines towards the 1.4480 area, defined as a support by the low of Jan. 29, 2020.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.