EUR/CAD Down 25 Pips, in a Downtrend Over Past 14 Days; Price Base in Formation Over Past 30 Days

EUR/CAD Price Recap

EUR/CAD is down 25 pips (0.17%) since yesterday (with its current price near 1.4381), marking the 8th day in a row a decline has happened. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 7.1% from the day prior, but down 12.01% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/CAD ended up ranking 25th for the day in terms of day-over-day price change. Here is a price chart of EUR/CAD.

EUR/CAD Technical Analysis

Notably, EUR/CAD is now close to its 20, 50, 100 and 200 day averages, located at 1.4539, 1.4564, 1.4581 and 1.4698 respectively, and thus may be at a key juncture along those timeframes. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Price action traders in particular will want to note that the 30 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone down 9 out of the past 14 days. And for candlestick traders, a special treat: there is a doji pattern showing up on the charts as well. Rejoice!

A final note on correlations: over the past 7 days, EUR/CHF has been the pair most correlated with EUR/CAD — not terribly surprising, given that EUR is in both currency pairs. As for pairs with the least correlation, look no further than NZD/USD if you’re focused on just this past week, or USD/NOK for a look at a broader, two week window.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURCAD, with 13 buy signals on our radar and 7 sell signals. This imputes a buy/sell ratio of 1.86, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Look for entries when the price test the Resistance and the 0.236 FIB level….__________________________________________________________________________________________________________________________________________________Guys if you like my ideas, please drop a like and follow me if u like my trades….Every trader has the freedom to place a trade in any direction.