Annual Forecast for EURCAD (2021): Price Expected to Correct Lower Considerably Below 1.5991 Level

Annual Forecast for EURCAD (2021): Price Expected to Correct Lower Considerably Below 1.5991 Level

EURCAD Price Analysis – December 23

At the beginning of the 2020 year, the EURCAD rate opened with a conservative value at 1.4561 level and since then it has sustained its upward momentum until it reached the multi-year barrier at 1.5991 which saw its upside traction stalled. The euro has become pretty weak on Christine Lagarde’s comments lately. Against the CAD, it becomes most visible.

Key Levels
Resistance Levels: 1.8000, 1.7508, 1.5991
Support Levels: 1.5317, 1.5000, 1.4263
EURCAD Monthly Chart: Ranging
On the monthly chart above, you can see that this pair has been going mostly sideways for most of the year, contained between 1.4263 low level and the current high level of 1.5991.

Now, the very last episode is a strong spike to the heights of 1.5785 level. From there, EURCAD went down to 1.5402 while undoing the gain. If it reaches the depths of psychological 1.5000 in the middle of the channel, get prepared to see it go further down to the mid 1.4263 regions.
EURCAD Weekly Chart: Ranging
EURCAD is boosted by upside pressure, with mild potential for further increase towards 1.5991. Price is facing mild bullish pressure from medium-term support, in line with the horizontal swing low support at 1.5317, where reversal took place.

The next zone is the extension from the ascending trend line, where we could see a bounce to the initial resistance level at 1.5991. The relative strength is approaching resistance as around 60 as well. In 2021 if EURCAD is unable to breach the 1.5991 barriers expect a plunge to the 1.4263 level.

Conclusion
Look to sell EURCAD upon reaching 1.5991 barriers to 1.4263 and upon breach of the barrier look to buy the EURCAD pair. The exchange rate is currently trading near the lower line of the channel pattern and could be set for a breakout.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.