EUR/CAD is back to testing its longer-term rising trend line, and it looks like the area of interest could still hold.
Check out these support zones on the 4-hour time frame!
This euro pair has been forming higher lows connected by a rising trend line that’s been been holding since August, and it looks like the floor is being put to the test once again.
Political uncertainty in France has weighed on the shared currency in the past week, but it still appears to be drawing support thanks to improving economic data and hawkish ECB commentary.
Can EUR/CAD bounce off these Fib levels?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Price is already hovering around the 50% Fibonacci retracement level, which is right around the trend line and the 1.6200 major psychological support.
A larger correction could reach the 61.8% Fib near S1 (1.6170) which could be the line in the sand for a bullish pullback. Long red candlesticks closing below this area could suggest that a reversal from the uptrend is in order, potentially taking EUR/CAD to the next downside targets at S2 (1.6070) then S3 (1.5970).
Should euro bulls continue to defend the trend line, look out for a continuation of the climb to the upside targets around the swing high and R1 (1.6370) then to fresh highs at R2 (1.6470).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
