EUR/CAD Rebound Faces Test at Monthly Open
- EURCAD responds to key support- Longs scalps target November open
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
- EURCAD responds to key near-term support confluence into 1.4194
- Resistance 1.4396-1.4429 backed by 1.4562/90- bearish invalidation level
- Support break targets objectives at the 200DMA, 1.4113 & 1.3991
- Daily RSI holding above 40, pending resistance triggers- breach would be bullish
- Key Event Risk Ahead: Eurozone 3Q GDP tomorrow
Notes: EURCAD is responding to confluence support at the 100% extension of the decline off the yearly high and a median-line parallel extending off the September lows (check daily chart). This recent ascending slope off the lows has continued to define price action and our focus remains weighted to the topside while within this formation. Interim resistance stands at 1.4360 backed by a pair of parallels / the 23.6% retracement at 1.4396. A break higher eyes subsequent resistance objectives at 1.4444 & 1.4493.
Interim support rests with the median-line backed by the weekly open at 1.4267 with a move below the monthly low-day close at 1.4232 needed to shift the focus back to the short-side. A quarter of the daily average true range (ATR) yields profit targets of 36-40 pips per scalp. Added caution is warranted heading into the Eurozone Gross Domestic Product (GDP) release on Friday with the data likely to fuel some volatility in euro crosses.
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Relevant Data Releases Next Week
Other Setups in Play:
- EUR/JPY on the Cusp of Important Move
- AUD/JPY Flirting with Pivotal Support
- Webinar: Post NFP Setups Play- Sterling Crosses at Risk
- Key Reversal Day Sets Ominous Tone for GBP/JPY
- GBP/USD Breakdown Potential on BoE, NFP- Levels to Know
---Written by Michael Boutros, Currency Strategist with DailyFX
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