EUR/CAD is testing a confluence of technical levels on its 4-hour time frame, and these candlestick patterns appear to be hinting at a bounce.
How high can it go if the uptrend resumes?
Take a look at these inflection points!
EUR/CAD 4-hour Forex – Chart Faster with TradingView
Geopolitical headlines have caused quite a ruckus on oil prices lately, sparking huge price swings for oil-related Loonie pairs.
EUR/CAD, in particular, has surged above the 1.6200 major psychological ceiling earlier this month on fading Venezuela-related oil supply concerns. The pair has since turned upon hitting resistance at R2 (1.6350) on Trump’s tariffs threats against Europe, before settling around the pivot point (1.6190).
Can this former resistance zone hold as support from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Canadian dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
A couple of doji candlesticks can be seen at the area of interest, reflecting indecision among bulls and bears. Confirmation candles closing above the support zone could suggest that the uptrend is about to gain traction, possibly taking EUR/CAD back up to R1 (1.6280) then the swing high.
Keep an eye out for sustained upside momentum that could even lift the pair to fresh highs closer to R3 (1.6430) and beyond.
On the other hand, another batch of long red candles closing below the rising trend line connecting the lows since the start of the year could suggest that a reversal is in order. In this case, look out for further downside until S1 (1.6120) then S2 (1.6040), as the eurozone gears up to print flash GDP and CPI readings from its top economies.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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