Main Support On EURCAD
FХ Strategist & Financial Commentator
The technical scenario is very similar to what I showed you on yesterday’s video, with a very weak Euro and 7 bearish sessions in a row, that led this pair to mark a new bottom breaking
at least temporarily 1.4420 where we have an important support area around the double bottom of September 2019.
The volatility is still very low and is currently nearby the last 5 years bottom. Exactly as I showed you yesterday about Euro Dollar, a possible increase in the next few days could favour a bounce of the Euro that in particular against the Canadian Dollar is really week in the beginning of 2020.
Looking at the RSI, we can see how it fell under the oversold level again: this signal it’s pretty interesting, as lately, this technical condition has always generated, a bounce of the euro, at least temporarily.
And again, the combination of the oversold on the RSI and the important support area around 1.44 could favour a bounce today, in case of a comeback towards 1.4470 around the 61% Fibonacci retracement of yesterday’s range.
As always, the setup would be denied with a daily close below 1.4380 setting the new bottom of the last two years and a half.
It is very important for the Euro to build a base around this price area, as the next major support can be expected around 1.38, almost 600 pips underneath the current quotes.
As always I recommend to trade carefully and to plan at best every move. Have a good trading and see you for the next video.