EUR/CAD produced a bullish candle in the daily chart yesterday. However, the daily chart shows that the price has been bearish for some weeks. Thus, yesterday’s bullish candle may have come out as a bullish corrective candle. Thus, intraday sellers may look to go short in the pair and drive the price towards the South. If today’s candle comes out as a bearish reversal candle, the sellers in the daily chart may go short in the pair below yesterday’s lowest low. Let us now have a look at three vital charts.
Chart 1 EUR/CAD Daily Chart
The chart shows that the price has been heading towards the South by having a bullish correction. It found its support at 1.54700 and produced a bullish reversal candle. The candle looks a strong one to push the price towards the North, however, the price in the daily chart has long been bearish. Thus, the sellers may wait for the price to produce a bearish reversal candle and go short below the level of 1.54700. The price may find its next support around 1.53500.
Chart 2 EUR/CAD H4 Chart
The chart shows that the price made a strong bullish move upon producing a bullish engulfing candle. It had a rejection at 1.55800. If the price consolidates and makes a breakout at the level of 1.55800, the buyers may push the price toward the North further. The price may find its next resistance around 1.56650. On the contrary, if the price heads towards the South, it finds its next support around 1.54900.
Chart 3 EUR/CAD H1 Chart
The chart shows that the price after being bullish has been roaming around the level of 1.55430. The price had several bounces at the level. If it heads towards the North from here and makes a breakout at the level of 1.55570, the price may find its next resistance around 1.55760. On the contrary, if the price makes a bearish breakout at 1.55430, the price may find its next support around 1.55000. The level of 1.55430 may play a significant role. The H1 traders may eagerly wait to find out whether the level works as a level of support or it gets breached by the Bear?
The Daily chart is bearish biased. The H4 chart looks good for the Bull. The H1 chart looks good for both. It means the H1 chart is going to play a key role here to determine the pair’s next direction.