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Tuesday, 11 April 2017 17:51 Written by

Technical Analysis – EURCAD increasingly bearish below 200-day moving average

Posted on April 11, 2017 at 12:57 pm GMT by the XM Investment Research Desk

 


EURCAD has been broadly moving lower since early this year. Prices have been challenging the 200-day moving average (MA) and after several attempts to cross above it, they quickly fell back below it. The latest rise above the moving average took prices to the key 1.4600 level which proved to be strong resistance and brought on a reversal back below the 200-day MA.

The short-term bias has turned increasingly bearish after falling below the 50-day MA. The market has retraced more than half of the upleg from 1.3782 to 1.46 and prices are now testing the 61.8% Fibonacci retracement level of this rise. Should this level fail to hold as support, prices would target the key 1.4000 level.

RSI has dipped below 50, which points to weakness in the market and suggests further downside momentum in EURCAD is possible. The 50% Fibonacci and the 1.4200 level will likely limit any bounces. A break above 1.4400 (23.6% Fibonacci) is needed to weaken the short-term bearish view and bring the bias to neutral.

 

Sourcewww.xm.com

Read 142 times Last modified on Tuesday, 11 April 2017 17:51

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