FXstreet.com (San Francisco) - The euro is poised to close lower against its Canadian counterpart this Wednesday as the strong bearish trend momentum overshadows Monday’s bullish reversal print.
Monday’s low at 1.2360 offers immediate support for EUR/CAD in the near-term. Below there, next support may be found at the psychological 1.23 figure. Resistance comes in at 1.2433 (21 EMA, 4-hour). EUR/CAD last trades at 1.2415 vs. 1.2441 late Tuesday, and the market remains capped below the 9-day EMA.
From TD Securities : “The EUR is looking oversold [vs. CAD] but short, medium and longer-term trend momentum studies remain aligned bearishly, implying to us very limited scope for a rebound in the EUR at present. New lows for the cross in the next few days should confirm the ongoing downward momentum here. We continue to look for a drop to the 1.21/1.22 area.”
Monday’s low at 1.2360 offers immediate support for EUR/CAD in the near-term. Below there, next support may be found at the psychological 1.23 figure. Resistance comes in at 1.2433 (21 EMA, 4-hour). EUR/CAD last trades at 1.2415 vs. 1.2441 late Tuesday, and the market remains capped below the 9-day EMA.
From TD Securities : “The EUR is looking oversold [vs. CAD] but short, medium and longer-term trend momentum studies remain aligned bearishly, implying to us very limited scope for a rebound in the EUR at present. New lows for the cross in the next few days should confirm the ongoing downward momentum here. We continue to look for a drop to the 1.21/1.22 area.”
