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26 Feb 2015
EUR/CAD: lower highs and tests 1.4000 psychological level
FXStreet (Guatemala) - EUR/CAD is trading at 1.4026 with a high of 1.4148 and a low of 1.3980.
EUR/CAD is extending the downside, and as analysts at TD Securities noted, the cross has extended through the February range low and short-term trend support in the past 24 hours. "We continue to think early week price action (bearish key week reversal, rejection of the 200-day MA) points to more downside in the cross near-term." The CPI data from Canada was positive and strong in comparison to expectations and see's funds making lower highs also.
"Assuming the February consolidation actually represents a minor double top, the implication of today’s drop below 1.4065/75 is that EURCAD is liable to reach 1.3830 in the next 1-2 weeks. We look for firm resistance from here near 1.4100/10. Weekly price action looks potentially negative and short-term trend momentum is aligning bearishly; the building blocks of a more sustained move lower are developing."
EUR/CAD is extending the downside, and as analysts at TD Securities noted, the cross has extended through the February range low and short-term trend support in the past 24 hours. "We continue to think early week price action (bearish key week reversal, rejection of the 200-day MA) points to more downside in the cross near-term." The CPI data from Canada was positive and strong in comparison to expectations and see's funds making lower highs also.
"Assuming the February consolidation actually represents a minor double top, the implication of today’s drop below 1.4065/75 is that EURCAD is liable to reach 1.3830 in the next 1-2 weeks. We look for firm resistance from here near 1.4100/10. Weekly price action looks potentially negative and short-term trend momentum is aligning bearishly; the building blocks of a more sustained move lower are developing."