A brief look at recent activity on the 4hr EURCAD chart today.
Interestingly, we can see price action sandwiched between the current weekly pivot level of 1.4990 and 1.5050 which is the central element we will focus on here.
The previous weekly pivot (1.5050) is now acting as a stern resistance region since switching from a strong support level in recent months. At the start of April, EURCAD toyed with the idea of creeping higher, but notice the blistering impulsive moves downward whenever we see two or three consecutive bullish candles; it suggests sellers still have the upper hand in the short-term.
At the time of writing, it would appear the latest weekly pivot area of 1.4990 is holding as a reasonable support level. Several longer candles wicks failing to close below this line confirms this theory.
So where does the pair go from here? As the longer-term moving averages look relatively flat, perhaps more sideways, consolidative moves can be expected during upcoming sessions. However, should the bearish assaults continue, we may see a nudge towards a previous low of 1.49 as an intraday target.
By Adam Taylor
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: Go Markets, Tradingview