CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Chart of the day EURCAD shortterm corrective up move remains intact

Article By: ,  Financial Analyst
June 26, 2018 7:40 AM

Short-term technical outlook on EUR/CAD (Tues 26 Jun)



Key technical elements

  • In the longer -term, the EUR/CAD cross pair is evolving within a bearish ‘Ascending Wedge” corrective up move structure in place since Aug 2012 with the top of the Ascending Wedge” coming in at 1.6260/6480 that confluences with the upper boundary of a long-term secular “Triangular Range” configuration in place since Oct 1998 (see weekly chart).
  • In the shorter-term, the EURCAD is still undergoing a potential upleg phase within a minor corrective up move structure in pace since 30 May 2018 low. The significant intermediate resistance stands at the 1.5660/5705 zone which is defined by the minor swing high area of 25 Apr 2018, the upper boundary of the minor ascending channel from 14 Jun 2018 low and a Fibonacci projection cluster (see 1 hour chart).
  • The key short-term support rests at 1.5450 which is defined by the lower boundary of the aforementioned minor ascending channel and close to the 23.6% Fibonacci retracement of on-going up move from 14 Jun 2018 low to 25 Jun 2018 high (see 1 hour chart).
  • The hourly Stochastic oscillator is now coming close to an extreme oversold level at 10 which suggests that the recent pull-back from the 25 June 2018 minor swing high of 1.5586 is “overstretched” and another potential upleg phase should materialise.

Key Levels (1 to 3 days)

Intermediate support: 1.5500

Pivot (key support): 1.5450

Resistances: 1.5650 & 1.5705

Next support: 1.5345/5290

Conclusion

Therefore as long as the 1.5450 key short-term pivotal support holds, the EUR/CAD may see another round of corrective upleg to target the next intermediate resistances at 1.5650 and 1.5705.

However, failure to hold at 1.5450 negates the bullish tone for a deeper pull-back towards the next support at 1.5345/5290 (the former minor range resistance from 07 Jun/14 Jun 2018 & the minor ascending trendline from 30 May 2018).

Charts are from eSignal


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024