EUR/CAD 1H Chart: Bearish signals prevail

Source: Dukascopy Bank SA

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

The common European currency has been trading in an ascending channel against the Loonie since late June. After testing its bottom boundary on January 9, the pair started a five-week period of appreciation. 

As apparent on the chart, the Euro was testing the senior channel circa 1.56 once again mid-today. Given the strength of the senior pattern, as well as the diminishing trading range in the junior one, the rate might be due for a medium-term decline. A possible area of support for the following week could be near 1.54 where the Euro reversed last week.

In near term, however, it does face a significant support formed by the 55-, 100– and 200-hour SMAs and the weekly and monthly R1s in the 1.5550/1.5480 territory. This cluster needs to be surpassed in order to confirm the aforementioned bearish scenario.

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