EUR/CAD Price Analysis: Bears taking on bullish commitments at 1-hour support


  • EUR/CAD bears in control taking on recent hourly lows.
  • Bears seek a daily downside extension on the break of daily lows. 

Regarding the prior analysisEUR/CAD Price Analysis: Bears seek a break of hourly support, and then Thursday's, EUR/CAD Price Analysis: Bears picking up discounts on a fade on rallies, the price has indeed carved out a bearish continuation.

Prior analysis

EUR/CAD's upside correction has been capped by a significant Fibonacci level and the focus remains firmly on the downside.

The following is a top-down analysis that illustrates the bias. 

Daily chart

The daily chart's trajectory is south which raises prospects of a short opportunity from the lower time frames. 

1-hour chart

From a 1-hour perspective, the current support structure offers a faster entry point to target the downside from a restest of the support that would be expected to act as resistance. 

Momentum is bearish and the price is well below the 21-SMA.

Prior progress, 1-hour chart

As illustrated, the price has since melted to the downside and bears indeed were able to capitalize on a restest of the prior support structure for a discount on the short side. 

The price has again offered a discount from fresh lows to a 38.2% Fibonacci retracement that meets prior spike lows, a confluence that would be expected to now act as resistance. 

That being said, slightly higher up, in line with a 61.8% Fibo, a deeper correction to the higher structure will offer a better discount in seeking a downside extension to the daily demand area between 1.4750 and 1.4695. 

Live market, progress daily & 1-hour charts

As can be seen, the price is embarking on a downside extension and bears are riding the impulse towards a breakeven scenario. 

The conditions remain technically bearish and a break of the recent lows will trigger a breakeven position.  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.

EUR/USD News

GBP/USD: Bulls and bears will battle this out near the 61.8% golden ratio

The GBP/USD price has corrected 50% of the hourly bearish impulse. The bulls have been chipping away as profits are taken with bears moving aside one by one. This has resulted in a slow decelerating correction from which could attract sellers again. 

GBP/USD News

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.

EUR/USD News

Dogecoin killer Shiba Inu ready for new bull run

Shiba Inu gets listed on Binance.US, SHIB price recovers from the loss posted over the past week. The Shiba-Inu-themed token is one of the top 10 most mentioned cryptos on Twitter alongside BTC, ETH, DOGE, ADA.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures