Euro and Canadian dollar both have been showing signs of weakness against the U.S dollar lately which has in return affected the cross currency pairs with a lot of volatilty and extended consolidation in the market. Euro versus Canadian dollar under weekly time frame has been providing loonie with more bearish momentum to complete its dovish correction. A higher degree of correction followed by advanced corrective structure had got the pair stuck in a range bound between 1.4667 and 1.47923 which its EURCAD current weekly and daily support. Also we have our daily exponential moving average 50 acting as a base to the current market price for sustaining above the previous resistance turned support now. EURCAD in daily took a reversal from its daily high near exponential moving average 200 i.e 1.49744; this zone has become very weak in terms of supply and demand which favored the bears mostly. A closing above the aforementioned area would provide us with a fractal confirmation of the market to move further in terms of hawkish sentiments. 

In four hourly chart we can clearly observe that EURCAD has entered the area of extended consolidation and is stuck between the exponential moving averages 50 and 200. Our upper trend lines both in daily and four hourly time frame have been broken and have went for a retest, forwarded by a closing above our strong support zone at 1.47926. We are bullish from the current market scenario and price action on Euro versus Canadian dollar also because MACD is reverting its strength from bears to bulls along with relative strength index with its head up at 47. Both of our trend lines will most probably become the points of reversal to the pair with a bullish exit from the extended consolidation zone. 

EURCAD D1

Aug 02 2021