Did you miss the range breakdown on EUR/CAD?
It seems that this pair is in the middle of a correction in the area of interest, but will it continue to hold?
Take a look at the inflection points I’m watching on the 4-hour time frame:
EUR/CAD Forex 4 Hours Chart by TradingView
European markets had a mostly bearish reaction to the US elections earlier this month, pulling the EUR/CAD pair below a strong support zone around the key psychological level of 1.4900.
However, the return of risk-off flows this week also forced the high-yielding CAD to take hits, allowing the pair to retreat into the interest zone.
Will he stand as resistance this time?
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on the EUR and CAD yet, it’s time to check the economic calendar and stay up to date with daily essential news!
The previous support area coincides with the 38.2% Fibonacci retracement level, which could be enough to attract Euro sellers and take the pair back to the swing low near S1 (1.4730) or to the next potential floor at S2 (1.4610).
A larger correction could still reach the 50% Fibonacci level near the minor psychological barrier R1 (1.4950) or the 61.8% level closer to the major psychological handle 1.5000, but a break above these levels could pave the way for a return to upside targets. At R2 (1.5040) then R3 (1.5160) just below the swing high.
Don’t forget that Canada has a Consumer Price Index report is under release and could lead to additional volatility for CAD pairs.
As always, watch out for other high-level triggers that can impact overall market sentiment, and be sure to practice proper position sizing when making any trades!