By: DailyForex.com
The EUR/CAD has been trading in a Bullish Channel since around the middle of August when it bottomed out at 1.2128, establishing the lower anchor point for the ascending channel. Last week the pair double topped at 1.2806 and began a bearish descent that lasted 3 days so far, with only yesterday being more Bullish. However, yesterday's price action appears to have only been visiting the 1.2630 level and is now turning bearish again as the Asian session winds down and we begin the countdown to the higher volume session in London. At time of writing, price has already fallen more than 50% of yesterdays bullish range, trading at 1.2613 with only 1 hour to go until the London opening bell. Support is actually quite sparse as this pair tends to make bigger daily moves than some other pairs. The 62 day moving average will act as support in the 1.2565 area, but a close below this average could signify a true trend change, back to the Bearish trend that has been predominant since at least June 2011. The break of 1.2630 (now acting as resistance), and the ascending channel that intersected that level is probably foreshadowing enough, but look for support in addition to 1.2565 at 1.2513, and again at 1.2465. Also, a close below 1.2350 will see the pair looking for fresh lows or at least a possible visitation of the year's low @ 1.2128. To the upside we see resistance at 1.2720 & 1.2840, but having double topped at this level once, it will take allot of huffing and puffing from the bulls to get back above this level.
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