EUR/CAD just can’t make new highs above 1.5000!
Are we seeing a possible reversal in the making?
We’re looking at the daily chart for a long-term bet!
EUR/CAD: Daily
EUR/CAD Daily Forex Chart by TV
EUR/CAD has been consolidating between 1.4400 and 1.5000 all year, which isn’t really surprising since the pair had a good couple of months jumping from 1.2900 to 1.4600 between September and January.
But are we looking at a consolidation that will lead to a bearish reversal?
The Head and Shoulders pattern forming on the daily time frame is saying it’s possible.
Aside from the reversal pattern, the 100 SMA has also flattened instead of maintaining its bullish direction.EUR/CAD has just bounced from the Head and Shoulders “neckline” that lines up with the S1 (1.4280) of the Pivot Points and the 200 SMA on the daily chart.
Watch out for a rejection at the 1.4600 psychological handle near the 100 SMA and Pivot Point level.
A bounce lower from 1.4600 opens the pair to a trip back to the Head and Shoulders “neckline” or even a downside breakout all the way to the 1.3800 area of interest.
Feel like buying the euro against the Loonie instead?
You can wait for EUR/CAD to breach its 1.4500 short-term resistance and aim for the 1.4600 zone or the nearest inflection point.
Good luck and good trading this one, yo!