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10 Apr 2015
EUR/CAD: Downside looking towards the 1.3300 level
FXStreet (Guatemala) - EUR/CAD is currently trading at 1.3332 with a high of 1.3439 and a low of 1.3325.
EUR/CAD has been in consolidation of the bearish break of the key support at 1.3380/90 and could be en route for a test of the 1.3300 level, but unlikely until we see a new catalyst that came from a heavy data line up next week, including question fired at Draghi post the ECB meeting. Meanwhile, analysts at TD Securities explained that more obvious new cycle lows for EUR/CAD keeps the EUR on track for our anticipated push to 1.33 (measured move, short-term target derived from the 1.3760/65 double top).
"Weekly patterns imply a strong rejection of the 1.3760 area and that an
important top/reversal has developed through late March/early April. With the cross dropping to new lows today and trend momentum signals on the short, medium and longer-term charts aligning bearishly, we look for deeper losses (sub-1.30) in the medium-term. A weekly close below 1.3450 (61.8% Fibonacci support of the 2012/2014 rally) would be additional bearish signal (76.4% retracement is 1.2945, 100% is 1.2130). Look to fade minor gains."
EUR/CAD has been in consolidation of the bearish break of the key support at 1.3380/90 and could be en route for a test of the 1.3300 level, but unlikely until we see a new catalyst that came from a heavy data line up next week, including question fired at Draghi post the ECB meeting. Meanwhile, analysts at TD Securities explained that more obvious new cycle lows for EUR/CAD keeps the EUR on track for our anticipated push to 1.33 (measured move, short-term target derived from the 1.3760/65 double top).
"Weekly patterns imply a strong rejection of the 1.3760 area and that an
important top/reversal has developed through late March/early April. With the cross dropping to new lows today and trend momentum signals on the short, medium and longer-term charts aligning bearishly, we look for deeper losses (sub-1.30) in the medium-term. A weekly close below 1.3450 (61.8% Fibonacci support of the 2012/2014 rally) would be additional bearish signal (76.4% retracement is 1.2945, 100% is 1.2130). Look to fade minor gains."