EUR/CAD cannot make new highs above 1.5000!
Are we seeing a potential reversal in the manufacturing process?
We are looking at the daily chart for a long range bet!
Daily forex trading EUR/CAD Planned by TV
EUR/CAD has been consolidating between 1.4400 and 1.5000 all year, which isn’t really surprising as the pair spent a good couple of months jumping from 1.2900 to 1.4600 between September and January.
But are we looking for a consolidation that would trigger a bearish reversal?
A head and shoulders pattern is forming on the daily time frame which indicates that this could happen.
Apart from the reversal pattern, the 100 SMA may also flatten rather than sustain its bullish trend.
EUR/CAD just rebounded from the head and shoulders “neckline” which lines up with the S1 (1.4280) pivot point and the 200 SMA on the daily chart.
Watch for rejection at the 1.4600 psychological handle near the 100 SMA and pivot point level.
A bounce down from 1.4600 opens the pair on a journey back to the “neckline” of the head and shoulders or even a breach to the downside all the way to the 1.3800 area of interest.
Would you like to buy the Euro against the Canadian dollar instead?
You can wait for EUR/CAD to breach short term resistance of 1.4500 and target 1.4600 or nearest inflection point.
Good luck and good trading on this, yo!