EURCAD Remains in Consolidation Past the 1.5500 Level After Upside Rejection

EURCAD Price Analysis – January 13

The EURCAD pair trades under the 1.5550 level after meeting a strong barrier at the 1.5785 level in an upside correction. EURCAD is slipping to sellers’ territory and well on its way for prospects of a price correction. Crude oil made a new swing high and at the same time, CAD may see some upside.

Key Levels
Resistance Levels: 1.5785, 1.5675, 1.5609
Support levels: 1.5422, 1.5376, 1.5200
EURCAD Long term Trend: Ranging
The emergence of some fresh CAD buying, in turn, was seen as one of the key factors that capped the upside for the EURCAD pair beneath the 1.5550 level. The downside, however, remained cushioned on the back of weaker crude oil prices at the 1.5422 level. In the larger context, a fall from the 1.5785 level is seen as the 3rd phase of the corrective pattern from prior highs.

The rejection by the moving average 5 is keeping the trend bearish. But we’d expect a loss of downside momentum as it approaches the key support at the 1.5422 level. On the upside, a firm break of the 1.5550 resistance level is needed to indicate a price rebound. Otherwise, the trend may continue to consolidate in case of a rebound.
EURCAD Short term Trend: Ranging
EURCAD intraday bias remains neutral as consolidation continues from the 1.5785 high. On the other hand, a breach lower of 1.5500 would target the 1.5422 low level. The breach will resume the stronger fall from the 1.5970 level.

However, a break higher of the 1.5550 resistance level will extend the consolidation pattern from 1.5389 with a new phase of growth. Instead, the intraday bias will be directed up towards the 1.5609 level. Besides, the likelihood of a short-term trading stop being triggered above the level of 1.5675 contributes to its increase.

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