Talking Points
EURCAD responds to key support- Longs scalps target November open
Updated targets & invalidation levels
Event Risk on Tap This Week
EURCAD Daily
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
EURCAD responds to key near-term support confluence into 1.4194
Resistance 1.4396-1.4429 backed by 1.4562/90- bearish invalidation level
Support break targets objectives at the 200DMA, 1.4113 & 1.3991
Daily RSI holding above 40, pending resistance triggers- breach would be bullish
Key Event Risk Ahead: Eurozone 3Q GDP tomorrow
EURCAD 30min
Notes: EURCAD is responding to confluence support at the 100% extension of the decline off the yearly high and a median-line parallel extending off the September lows (check daily chart). This recent ascending slope off the lows has continued to define price action and our focus remains weighted to the topside while within this formation. Interim resistance stands at 1.4360 backed by a pair of parallels / the 23.6% retracement at 1.4396. A break higher eyes subsequent resistance objectives at 1.4444 & 1.4493.
Interim support rests with the median-line backed by the weekly open at 1.4267 with a move below the monthly low-day close at 1.4232 needed to shift the focus back to the short-side. A quarter of the daily average true range (ATR) yields profit targets of 36-40 pips per scalp. Added caution is warranted heading into the Eurozone Gross Domestic Product (GDP) release on Friday with the data likely to fuel some volatility in euro crosses.
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Relevant Data Releases Next Week
Other Setups in Play:
EUR/JPY on the Cusp of Important Move
AUD/JPY Flirting with Pivotal Support
Webinar: Post NFP Setups Play- Sterling Crosses at Risk
Key Reversal Day Sets Ominous Tone for GBP/JPY
GBP/USD Breakdown Potential on BoE, NFP- Levels to Know
—Written by Michael Boutros, Currency Strategist with DailyFX
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Source: Daily fx