EURCAD breaks key support level
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
EURCAD finished the week -0.36% lower at 1.5152 after losing 43 pips (-0.28%) today on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (EURCAD as at Sep 14, 2018):
Friday's trading range was 83 pips (0.55%), that's slightly below last trading month's daily average range of 94 pips. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.
Prices are trading close to a key support level at 1.5079. Breaking below the key support level at 1.5174 today, it is now likely to act as resistance going forward. After having been unable to move above 1.5221 in the previous session, the currency ran into sellers again around the same price level today, failing to move higher than 1.5227.
Although the FX pair is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory. The forex pair broke below the 50-day moving average at 1.5186 today for the first time since September 11th.
Selling might speed up should prices move below the close-by swing low at 1.5092 where further sell stops could get activated.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are EURUSD losing -0.56% and AUDUSD closing -0.51% lower. On the flipside the best performers have been USDCAD closing 0.28% higher and USDCHF gaining 0.21%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDTRY surging 1.46% and USDZAR closing 1.1% higher. The worst performers of the day have been TRYJPY tanking -1.2% and ZARJPY closing -1.06% lower. Read more