Analysis | May 17, 2021

KTM FX Daily: Trade idea-EURCAD

EURCAD-Canadian dollar overbought?

EURCAD may be running into an area of support defined by the following:

  • Positive 14-day RSI divergence.
  • 0.80 Fibonacci level of February 2020-March 2020 (cobra move).
  • Tested and holds the 8.5-year rising trendline.
  • 161.8 FE (Weekly) located at 1.4640.
  • 200MA-Weekly located at 1.4580.

Overall a thick support zone spread between 1.4580-1.4640 levels. Is this the place to buy EUR against CAD?

The price action has been well supporting at 1.4580 last week and a break below this level paves the way for further lower prices back to 1.4450 and 1.4300 levels.

On the upside chart pattern is supportive but the market needs to take our recent high at 1.4750 to confirm the trend once again. In this case, 1.4850 and 1.4990 could be the next destinations.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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