Whether you’re bullish or bearish on the Loonie, I’ve got some setups on EUR/CAD and USD/CAD that you gotta see!
Check out these support and resistance levels I’m watching:
EUR/CAD: 4-hour
First up is this simple range setup on the 4-hour chart of EUR/CAD.
As you can see from the chart above, the pair has been cruising sideways between support at the 1.3400 handle and resistance at the 1.3750 minor psychological mark.
Price has just been rejected on its attempt to break above the ceiling, so another dip to the bottom of the range might follow.
However, the selloff might be cut short at the mid-range area of interest since technical indicators are hinting at a return in bullish pressure.
I’m seeing a fresh bullish moving average crossover that suggests buyers are regaining control while Stochastic is reflecting exhaustion among sellers. Turning higher would confirm that bullish momentum is picking up, possibly allowing the 1.3600 level to keep losses in check.
USD/CAD: Daily
Is the trend still my friend on this one?
USD/CAD is still moving inside an ascending channel on its daily time frame, breaking below the mid-channel area and setting its sights on the bottom.
The pair is closing in on the 1.2600 major psychological mark, which technical indicators suggest could hold as a floor. After all, the 100 SMA is above the 200 SMA while Stochastic is dipping into the oversold territory.
This means that sellers could use a break pretty soon, allowing buyers to take over and lift USD/CAD back to nearby resistance levels. In fact, if buyers are eager to jump in, the moving averages might be enough to hold as dynamic support.
Dollar bulls (or Loonie bears) could aim for the mid-channel area of interest around 1.2850 or go for gold at the channel top around the 1.3100 mark.
