EURCAD → A change in sentiment to bearish. MA-200 breakdown

28 août 2024

EURCAD breaks trend support and spills to the downside as funds increase long positions on the Canadian dollar, whose rise is directly linked to the fall in DXY.



On D1, we see the currency pair returning to the range (1.5040 resistance) after a deep false breakdown. Accordingly, after the short-squeeze the market has potential - liquidity located at the bottom. Accordingly, in the nearest future the market may test 1.497, then 1.493.
BUT! On H4 there is a strong zone of 1.498 ahead. There is a high probability of a false breakdown and correction before a further fall, because below this zone there is a huge pool of liquidity, which will not let the price pass the first time.

Resistance levels: 1.506, 1.5085
Support levels: 1.498, 1.49

The 200&50 SMAs act as resistance, which indicates the current market sentiment. If the market is weak, a correction may not happen, bears may break the level quite quickly. In any case, it is worth watching the price reaction at 1.498

Rate, share your opinion and questions, let's discuss what's going on with ★ EURCAD ;)

Regards R. Linda!

28 août 2024

Transaction en cours

Attempt to break through the support zone

29 août 2024

Transaction en cours

A retest of the liquidity zone and an attempt to consolidate below 1.5000 is forming
If the price starts to update local lows, we should get ready for a decline

30 août 2024

Trade fermée: cible de profit atteinte

First target achieved!