EUR/CAD 1H Chart: Broadening Wedge

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Source: Dukascopy Bank SA

Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Buy Neutral Neutral
Stochastic (5; 3) Neutral Sell Sell
Alligator (13; 8; 5) Sell Neutral Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate ⇒ ⇒ ⇒

[ANNOUNCE] The European common currency has entered a medium-term consolidation period which has resulted in the formation of a broadening wedge. [/ANNOUNCE] However, the lower wedge boundary was not reached during the rate's last wave down, as it halted abruptly circa 1.47—a support set by the weekly S1 and the 61.8% Fibonacci retracement. 

If a reversal is confirmed, it could demonstrate a shift in trader sentiment and therefore a possible buying opportunity. Technical indictors likewise support a slight recovery within this week.  

A significant resistance area is located near the 1.4860 mark set by the 55– and 200-hour SMAs, the monthly PP and the 38.2% Fibonacci line.

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