FX Reversals: EURCAD Resistance Update
- EURCAD starts week trading at R3 Resistance
- Range targets sit at 1.4485, S3 pivot support
- A move above 1.4555, R4 would signal a breakout on a higher high
EURCAD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The EURCAD has begun the week, trading near short term R3 resistance. With price failing to break out in early morning trading, range traders will look to take advantage of prices continuing to reverse back into the defined trading range pictured above. Currently range resistance is holding at 1.4532 as marked by the R3 pivot point. With price below this value, range traders can consider new sell entries in the event of an early morning price reversal. Range support currently stands at the S3 camarilla pivot which can act as potential range targets near 1.4485.
Range traders should be cautioned of a breakout above the R4 camarilla pivot point. A move beyond R4 resistance at 1.4555 would signal a short term move towards higher highs, and denote an increase in volatility as well as a change in market conditions. At this point, range trading should be concluded and traders can consider entries with the markets new influenced direction. Likewise, a break below S4 support at 1.4464 would signal a creation of a new daily low and signal potential further declines.
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---Written by Walker England, Trading Instructor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.