EURCAD Retreats From Daily Highs of 1.5452 As Canadian Dollar and Oil in Spotlight

EURCAD Price Analysis – January 20

EURCAD selling pressure caused retreats from daily highs of 1.5452, falling towards the mid 1.5300 level. The EURCAD has plunged by 0.35% against the Canadian Dollar since the day’s start. Canadian Dollar and oil stay in the spotlight with BoC rate decision featured as the oil price stays capped.

Key Levels
Resistance Levels: 1.5785, 1.5675, 1.5550
Support Levels: 1.5313, 1.5200, 1.5000
EURCAD Long term Trend: Ranging
The EURCAD has dropped back under 1.5400 level pulling lower from the prior day’s rebound high at 1.5479 level. The oil market will remain the dominant driver of EURCAD. However, the bears are back for major control with momentum indicators such as RSI beneath its midline.

In the long term, only a pullback below 1.5313 levels could switch the outlook into a negative one under its support region. To the upside, if the pair manages to overcome the key 1.5550 resistance level, the next resistance level to be watched will be the 1.5609 level and also 1.5785 swings high level on Dec 22, 2020.
EURCAD Short term Trend: Bearish
In the short-term, the outlook remains negative since prices hold below the 1.5400 level and the moving average 5 and 13 lines as the anticipated bearish cross between the MA’s stays in place. If the ascending trendline pattern holds, bullish traders are likely to continue to pressure the price higher during the following trading sessions.

However, a support level at the 1.5313 level could provide support for the currency exchange rate today if it declines with the 4 hour RSI reaching oversold levels. Against this, the loss of recent lows near the 1.5350 level could pave the way for a deeper retracement to the 1.5300 neighborhood.

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