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by Darius Anucauskas

EUR/CAD Hits Strong Support

After being on a strong slide since the 2nd of January, EUR/CAD finally found good support at the crossroads of the downside resistance line drawn from the high of the 25th of April 2018 and the upside support line taken from the low of the 3rd of October of the same year. The pair has already rebounded from that area, so for now, we will still remain bullish, but with some cautiousness, given the rate’s proximity to both of the above-mentioned lines.

A strong push higher and a break above the 1.5145 barrier could invite more buyers to the table and the rate may get lifted to its next potential area of resistance at 1.5235, marked near the high of the 15th of January. If the buying action doesn’t end there, the 1.5235 obstacle could be seen as a temporary pit-stop for EUR/CAD, as it could continue drifting higher towards its next potential resistance zone, at 1.5305, which is the high of the 10th of January.

In terms of the downside, in order to start looking at much lower levels, we would need to see EUR/CAD, not only dropping below both of the aforementioned trendlines, but also closing a daily candle below the 1.4980 support level. This way, the pair may continue with the slide towards the 1.4915 obstacle, marked by the low of the 3rd of December. This is where the rate might stall for a bit, until the bulls and the bears decide who takes control from there. But if the bear-pressure remains strong, EUR/CAD could break below the above-mentioned obstacle and continue falling, this time targeting the 1.4850 hurdle, which is the low of the 12th of November last year.

EURCAD daily

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