EUR/CAD Down 33 Pips; Breaks Below 20 Average

EUR/CAD Price Recap

EUR/CAD is down 33 pips (0.23%) since yesterday (with its current price near 1.45298), marking the 5th day in a row it has gone down. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 18.19% from the day before — and down 18.11% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/CAD ended up ranking 26th for the day in terms of day-over-day price change. Let’s take a look at price chart of EUR/CAD.

EUR/CAD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: EUR/CAD crossed below its 20 day moving average yesterday. Related to the moving average crossover is that EUR/CAD’s momentum/trend on a 30 day basis may be decelerating. Volatility for EUR/CAD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days EUR/CAD’s price has gone down 8 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURCAD, with 11 buy signals on our radar and 1 sell signals. This imputes a buy/sell ratio of 11, which is very 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.

El EURCAD vemos como se acerca a una zona de reversión potente donde ya ha roto esa estructura bajista creando un nuevo HH con gran potencia, por lo que se viene el retroceso de esa estructura y nuestra entrada segura….En este nivel marcado en gris, obeservamos un OB Bullis en confluenia con una zona de alta reacción y el nivel OTE de fib 79%….Con esto nuestro TP1 sera el 0% de fib y el tp2 el -127%.