Yesterday (June 12th):
- EUR/CAD continued its recent sideways movement, with no clear directional bias.
- The price action suggests continued uncertainty in the market.
Key Technical Levels:
- Resistance:
- 1.5238 – 1.5221 (Recent High & Support Turned Resistance)
- 1.5300 (Psychological Level)
- 1.5378 (Weekly High)
- Support:
- 1.5100 (Psychological Level)
- 1.5073 (50-Day Moving Average)
- 1.5025 (June Low)
Indicators:
- Moving Averages: The 50-Day Moving Average at 1.5073 is a key level to watch. A break below could indicate a bearish tilt, while a move above 1.52 could signal a bullish resurgence.
- Relative Strength Index (RSI): If available, check the RSI. A reading hovering around 50 suggests short-term neutrality, with no strong buying or selling pressure.
Overall:
- The EUR/CAD is currently in a consolidation phase, lacking a clear directional trend.
Trading Ideas (Disclaimer: This is not financial advice):
- Bullish Scenario: A breakout above 1.5238 (recent high) with a rising RSI could signal a potential move towards the weekly high of 1.5378 or even a retest of 1.54. This could be influenced by a weakening Canadian dollar or hawkish surprises from the Fed (if they hint at raising rates sooner).
- Bearish Scenario: A break below 1.5025 (June Low) and a declining RSI could indicate a decline towards the 50-Day Moving Average at 1.5073 or even lower. This could be supported by a stronger Canadian dollar due to rising oil prices or dovish signals from the Bank of Canada (if they hint at rate cuts).
Neutral Scenario: If the price remains stuck between 1.5025 and 1.5238 with the RSI oscillating around 50, the consolidation might continue.
Important Note:
- This analysis is based on publicly available information and should not be considered trading advice.
- Forex trading is risky, and you can lose money. Always conduct your own research before making any trades.
Additional Resources:
- DailyFX: EUR/CAD – Live Rate, Forecast, News and Analysis – https://www.dailyfx.com/eur-cad
- Forex.com: EUR/CAD forecast: Currency Pair of the Week – June 3, 2024 – https://www.forex.com/en-us/forex-trading/eur-cad/ (This analysis may be dated, but provides a good starting point)
- TradingView: EURCAD Chart – Euro vs Canadian Dollar – https://www.tradingview.com/symbols/EURCAD/