EUR/CAD consolidated around a double top resistance and produced a bearish engulfing candle. Yesterday’s candle came out as a doji candle. Today’s price action in the major intraday charts seems to be bearish biased. If today’s candle comes out as a bearish candle, the pair may remain bearish for a while. Let us now have a look at three key charts.
Chart 1 EUR/CAD Daily Chart
The chart shows that the price consolidated around the level of 1.54200 and produced a bearish engulfing candle. Yesterday’s candle came out as a doji candle. If today’s candle engulfs yesterday’s candle, the sellers may look for short opportunities in the pair. The price may find its next support around 1.50820. The price may consolidate around the level of 1.50820 before making a bearish breakout. However, if the price makes a breakout at that level that would be strong breakout. The sellers may go short in the pair aggressively and drive the price towards the South further.
Chart 2 EUR/CAD H4 Chart
The chart shows that the price made a bearish move upon producing a double top. The price had a bounce at the level of 1.52000. As of writing, the pair is trading around the neckline level. The sellers are to keep their eyes on the level. If it ends up producing a bearish reversal candle, they may go short below the level of 1.52000. The price may find its next support around 1.51000. On the contrary, if the price breaches through the neckline level, it may head towards the North and find its next resistance around 1.54000.
Chart 3 EUR/CAD H1 Chart
The chart shows that the price has been bullish in the H1 chart. The level of 1.52800 has been working as a level of resistance. The level produced a doji followed by a bearish engulfing candle. The sellers may look to go short and drive the price towards the next support. The price may find its next support around 1.52000. On the other hand, the buyers may wait for the price to make a reversal around 1.52475. If the price makes a reversal at 1.52475, the buyers may go long above 1.52800 and push the price towards the North. The price may find its next resistance around 1.53360.
The pair has been within a horizontal range for a long time. Thus, the next breakout might be a strong one. Considering the daily chart, the sellers may get optimistic to get the next breakout in their favor.