fxs_header_sponsor_anchor

News

EUR/CAD Price Forecast: Two possible scenarios for EUR/CAD

  • EUR/CAD could go higher after breaking out of a large multi-month consolidation. 
  • Alternatively, the pair might have formed a Double Top pattern and be about to fall.

EUR/CAD has two possible polar-opposite scenarios in which price could play out:

1) The pair is going higher – it has broken out from a consolidation pattern formed since August and is about to rally as it fulfills the price target for the pattern. 

2) The breakout above the upper trendline of the pattern is “false” and the pair has formed a small Double Top bearish reversal pattern (DT) instead. This will likely see prices fall if price breaks below the pattern’s lows.

EUR/CAD 4-hour Chart 

A break above the 1.5172 (November 1 high) would probably confirm scenario 1) and lead to a continuation higher, to an initial target at 1.5228, the August 5 high, followed by 1.5312, the 61.8% Fibonacci price projection of the height of the pattern. 

A break below 1.5101 (November 1 low), on the other hand, would probably confirm the DT and lead to a move down to 1.5051 which is equal to the height of the pattern extrapolated lower. 

Volume was lower on the right hand shoulder of the DT compared to the left (red dotted line on chart) which helps confirm the pattern as authentic and adds bearish color. 

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.