After Breaking Lower EURCAD Trends Beneath 1.5675 Level in Sideways Market

EURCAD Price Analysis – September 23

The common European currency has surged by 44 pips or 0.50% against the Canadian Dollar in the last 24 hrs. EURCAD had found buyers around the 1.5570 level for the 4th in 5 days. The EURCAD registered an intraday low of 1.5540 after crude oil prices stay relatively calm on Wednesday, failing to provide a directional clue to EURCAD.

Key levels
Resistance Levels: 1.6153, 1.5970, 1.5675
Support Levels: 1.5540, 1.5039, 1.4724
EURCAD Long term Trend: Ranging
In the larger context, the fall from 1.5970 level is seen as the third phase of the corrective pattern from 1.6153 (high) level. The sustained break of 61.8% retracement of 1.4258 level to 1.6153 at 1.5970 levels may aim a test on 1.3783 (low) level.

But we’d expect a loss of downside momentum as it approaches this key support. On the upside, though, a break of the 1.5675 resistance level is needed to confirm completion of the fall. Otherwise, the outlook will stay ranging. EURCAD Short term Trend: Ranging
Intraday bias in EURCAD stays in a range as a rebound from the level at 1.5540 short term bottom is in progress. The further rise should be seen to 38.2% retracement of 1.5675 to 1.5414 at 1.5540 levels. At this point, we’re viewing the rebound as a corrective move.

Hence, we’d look for a topping sign around there. Meanwhile, on the downside, a break of 1.5540 minor support levels is needed to indicate the completion of the rebound. Otherwise, the further rise will remain in favor in case of retreat.

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