Target 1:1.5110 (February Low)
Target 2: 1.4731 (100% Fib Extension)
Invalidation: Breakout above 1.5890 (61.8% Fib Retracement)
EUR/CAD Daily Chart
(Created using Marketscope 2.0 Charts)
The EUR/CAD has retraced to key resistance after declining as much as much as 995 pips from the 2016 high at 1.6105. Current resistance is found at 1.5723 using a 61.8% Fibonacci retracement that measures the distance between the previously mentioned high and standing February low at 1.5110. If today’s daily bar closes below this value, it opens the market to potentially turn back towards values of support. Potential bearish targets for the EUR/CAD include the current low at 1.5110 and a 100% Fibonacci expansion near 1.4731.
In the event that prices fail to turn lower, traders should continue to monitor the 78.6% retracement value at 1.5890. A move above this point suggests that a longer-term bullish move may be developing for the pair. In this scenario, traders may begin looking for the EUR/CAD to challenge and breakout above the current yearly high.
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