EURCAD Stays Constrained in Sideways Trading Beneath 1.5430 Level, Canadian Employment Figures Limit Downside

EURCAD Price Analysis – November 11

The EURCAD pair is losing a major part of its prior day recovery gains and was last seen hovering near the lower end of its daily trading range, around the 1.5370 level. It stays constrained in sideways trading beneath the 1.5430 level and above the 1.5300 level. The weaker oil price and poor Canadian employment figures limit the EURCAD downside.

Key Levels
Resistance Levels: 1.5739, 1.5600, 1.5430
Support Levels: 1.5313, 1.5200, 1.5039
EURCAD Long term Trend: Ranging
The emergence of some fresh CAD selling, in turn, was seen as one of the key factors that capped the upside for the EURCAD pair beneath the 1.5430 level. The downside, however, remained cushioned on the back of weaker crude oil prices at the 1.5300 level. In the larger context, a fall from the 1.5970 level is seen as the 2nd phase of the corrective pattern from 2020 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 1.5355 level. On the upside, a firm break of the 1.5430 resistance level is needed to indicate medium term bottoming. Otherwise, the trend may stay bearish in case of a rebound.
EURCAD Short term Trend: Bearish
EURCAD is staying in consolidation from 1.5313 temporary low level and intraday bias remains to the downside. With the 1.5526 resistance level intact, further decline is expected. On the downside, a break of 1.5355 will extend a larger decline to a 61.8% projection of 1.5739 to 1.5313 from 1.5670 at 1.5300 levels.

On the upside, however, a firm breach of the 1.5526 resistance level will indicate short term bottoming and turn bias to the upside for a stronger rebound. As can be seen, the price has pulled back into a buy area and has increased the offers, making room for the bulls to chase down higher volume zones on the 1.5500 mark.

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