© Dukascopy Bank SA
Supports: 1.2240; 1.2194; 1.2106
Outlook
Short bullish recovery, which started on the 22th of July has ended, when strong bearish momentum took place, and now EUR/CAD is about to reach a new low and is heading towards Lower Bollinger Band at 1.2240, that might prove to be support for the current movement downwards. In case bearish trend manages to breach it, then next support at 1.2194 (Weekly S2) might be the reversal point for the current dip. Besides, RSI indicator soon might show a buy signal, therefore indicating that EUR/CAD currency pair is over-sold. On the other hand, resistances are at 1.2363, 1.2401 and 1.2443 and seem to be safe for now.
Traders sentiment
Despite current bearish reaction, majority of the traders at SWFX market remain optimistic about EUR/CAD, as 74% of all traders hold long positions and 26% hold short positions respectively. In contrast, the distribution of orders obviously shows that most of the traders expect the Canadian Dollar to gain value against the single European currency, since almost 82% of traders ordered to sell and only 18% ordered to buy EUR/CAD currency pair.