Talking Points
- EURCAD rebound posts outside day off support– Long scalps favored
- Updated targets & invalidation levels
- Event Risk on Tap This Week
EURCAD Daily
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
- EURCAD rebounds off June high / posts outside day- bullish
- Interim resistance at the median line (~1.4333) backed by 1.4381
- Subsequent resistance objectives at 1.4429 & 1.4561/90
- Interim support 1.4160- bullish invalidation
- Subsequent support objectives at200DMA (1.4113), 1.4051 & 1.3991
- Daily RSI holding 40-support / pending resistance trigger- breach would be bullish
- Key Event Risk Ahead: Canada Retail Sales & CPI and Eurozone Consumer Confidence tomorrow
EURCAD30min
Notes: EURCAD has rebounded off June high with today’s rally breaking above TL resistance to post an outside-day candle. The immediate focus is higher while within the confines of the proposed pitchfork off last week’s low (blue) with resistance objectives eyed at 1.4293 & 1.4333/42. A breach above key resistance at 1.4382/86 is needed to validate a larger-scale reversal in the pair targeting the monthly open & the July high at 1.4493.
The trade remains constructive while above former trendline resistance / 1.4232 with a break sub 1.4160 needed to shift the focus back to the short-side targeting the 200-day moving average at 1.4114, the May high-day close at 1.4050 & the key 61.8% retracement at 1.3991. A quarter of the daily average true range (ATR) yields profit targets of 30-33 pips per scalp. Added caution is warranted heading into the Canadian retail sales & CPI figures tomorrow with the release likely to fuel volatility in CAD crosses.
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Relevant Data Releases Next Week
Other Setups in Play:
- NZD/USD Drops Into September High- Bearish Sub 6588
- Webinar: USDOLLAR Primed for Uptrend Continuation
- EUR/CAD Rebound Faces Test at Monthly Open
- EUR/JPY on the Cusp of Important Move
- AUD/JPY Flirting with Pivotal Support
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)
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