The EURCAD pair is trading within a bearish channel formed in the 4-hour chart since September 20. The price is reaching an extremely oversold level, and there could be an imminent technical rebound in the next few days.
The weakness of the Euro, and the strength of the Canadian dollar is reflected in this chart. A fall of 500 pips in two weeks shows that the euro is very vulnerable. Besides, in all crosses the euro is losing bullish strength. We believe that EUR / CAD could have a technical rebound as it is showing signs of exhaustion and the -1/8 murray support is likely to hold the downward pressure.
A sharp break above the downtrend channel and a consolidation above the 21 SMA located at 1.4595 could be a sign of a change in the scenario and the pair could rise to 8/8 of a murray and up to the 200 EMA located at 1.4811.
No bullish or bounce signal is observed at this time. Downward pressure is likely to continue. If so, we expect a good bounce off the bottom of the bearish channel around 1.4480. This could occur tomorrow with the NFP data of the United States only if the data is positive for the US dollar.
But if the data is negative for the US dollar, it is likely that the EUR / CAD may rise above 1.4560. For this, we must also expect weakness of the Canadian dollar. Therefore, a strong Euro and a weak dollar and CAD will create the conditions for buying above 1.45560 with targets at 1.4811 in the short term.
The oscillator of the eagle indicator is showing a positive signal. Having fallen to the level of 5 points on October 4, it is showing a signal of an increasing market volume. It means that the bulls are opening buy positions.
Support and Resistance Levels for October 07 - 08, 2021
Resistance (3) 1.4682
Resistance (2) 1.4652
Resistance (1) 1.4596
----------------------------
Support (1) 1.4511
Support (2) 1.4481
Support (3) 1.4404
***********************************************************
Trading tip for EUR/CAD for October 07 - 08, 2021
Buy above 1.4560 or if the pair rebounds off 1.4480 with take profit at 1.4648, 1.4770 and 1.4811 (EMA 200), stop loss below 1.4510 and 1.4430.