Chart of the day EUR/CAD short term corrective up move remains intact
Kelvin Wong June 26, 2018 11:40 AM
EUR/CAD continues to evolve inside a minor bullish ascending channel with short-term key support at 1.5450.
Short-term technical outlook on EUR/CAD (Tues 26 Jun)
Key technical elements
- In the longer -term, the EUR/CAD cross pair is evolving within a bearish ‘Ascending Wedge” corrective up move structure in place since Aug 2012 with the top of the Ascending Wedge” coming in at 1.6260/6480 that confluences with the upper boundary of a long-term secular “Triangular Range” configuration in place since Oct 1998 (see weekly chart).
- In the shorter-term, the EURCAD is still undergoing a potential upleg phase within a minor corrective up move structure in pace since 30 May 2018 low. The significant intermediate resistance stands at the 1.5660/5705 zone which is defined by the minor swing high area of 25 Apr 2018, the upper boundary of the minor ascending channel from 14 Jun 2018 low and a Fibonacci projection cluster (see 1 hour chart).
- The key short-term support rests at 1.5450 which is defined by the lower boundary of the aforementioned minor ascending channel and close to the 23.6% Fibonacci retracement of on-going up move from 14 Jun 2018 low to 25 Jun 2018 high (see 1 hour chart).
- The hourly Stochastic oscillator is now coming close to an extreme oversold level at 10 which suggests that the recent pull-back from the 25 June 2018 minor swing high of 1.5586 is “overstretched” and another potential upleg phase should materialise.
Key Levels (1 to 3 days)
Intermediate support: 1.5500
Pivot (key support): 1.5450
Resistances: 1.5650 & 1.5705
Next support: 1.5345/5290
Therefore as long as the 1.5450 key short-term pivotal support holds, the EUR/CAD may see another round of corrective upleg to target the next intermediate resistances at 1.5650 and 1.5705.
However, failure to hold at 1.5450 negates the bullish tone for a deeper pull-back towards the next support at 1.5345/5290 (the former minor range resistance from 07 Jun/14 Jun 2018 & the minor ascending trendline from 30 May 2018).
Charts are from eSignal
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