- EURCAD eyeing near-term insurgency – pullback to be noticed as event
- Updated targets cancellation levels
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Technical Outlook:EURCAD is responding to initial resistance. We discussed this setup during length in today’s webinar and streamer into a start of a week a risk stays for a pullback reduce sub-1.4428/50 before resumption of a broader allege seen off a Feb lows. Remember, we’re operative underneath a arrogance that EURAUD is undergoing a behavioral change with a topside crack of a incomparable forward arrangement off a 2015/2016 highs favored.
Key support bullish cancellation rests during a 1.42-hanldle with a crack aloft targeting a pivotal insurgency connection during 1.4533 where a 50% retracement converges on former trendline support fluctuating off a 2016 highs- a tighten above this segment would be indispensable to open adult a subsequent large leg aloft for EURCAD.
Notes: A closer demeanour during cost action highlights an mistake of a median-line / Dec highs with a span pulling behind currently in U.S. trade. Look for initial support during 1.4248/68 corroborated by near-term bullish cancellation during 1.4176- both levels of seductiveness for probable depletion / long-entries. A crack of a highs still has to contend with a top median-line together (blue) converges on a Aug lows during ~1.4428/50.
From a trade standpoint, I’ll be looking immediately reduce with a pullback into a reduce support objectives to offer auspicious long-entries. A entertain of a daily normal loyal operation (ATR) yields distinction targets of 23-27pips per scalp. Added counsel is fitting streamer into a Netherlands elections Eurozone CPI after in a week with a events expected to hint increasing sensitivity in a euro crosses.
Relevant Data Releases
Other Setups in Play:
- Strategy Webinar: USD, EUR Crosses in Focus as Markets Await Yellen
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- EUR/USD: Post-ECB Recovery to Face U.S. NFP
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– Written by Michael Boutros, Currency Strategist with DailyFX
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