EUR/CAD Consolidates Over 100 EMA – Potential Breakout Setup!
Arslan Butt • 1 min read
What’s up, traders.
The EUR/CAD created a bearish candle on Wednesday on the daily timeframe. The price appears to have discovered its resistance and may travel towards the South further.
The chart reveals that the price had a refusal at the mark of 1.46955 and created a bearish engulfing candle. Yesterday’s daily candle closed as a bearish one, suggesting that the bears have gained control of the pair. The price may obtain its next support at the level of 1.44740. This suggests the sellers have ample space to drive on the potential bearish wave.
The EUR/CAD chart reveals that the price has been on consolidation near the level of 1.46055. The price reacted at this level several times earlier. Thus, it may consolidate more. The level of 1.46490 may work as a level of resistance and drive the price towards the South. The sellers may go short on the pair below the level of 1.46055. It may find its next support at the level of 1.25560. In case of a bullish breakout at the level of 1.46490, the price may find its next resistance at the level of 1.46535. Considering risk-reward, the H4 chart favors the sellers.
Let’s look for buying above 1.4595 to target 1.4645 today. Good luck!