{"id":50686,"date":"2014-05-08T13:28:26","date_gmt":"2014-05-08T17:28:26","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=50686"},"modified":"2014-05-08T13:28:26","modified_gmt":"2014-05-08T17:28:26","slug":"eurcad-daily-trend-is-about-to-reverse","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/08\/eurcad-daily-trend-is-about-to-reverse\/","title":{"rendered":"EUR\/CAD Daily Trend Is About To Reverse"},"content":{"rendered":"<p>Technical Sentiment:\u00a0<span style=\"color: #ff0000;\"><strong>Bearish<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>Canadian Housing Starts rise to 195K, beating forecast of 177K;<\/li>\n<li>Euro rallies then slips hard as Draghi indicates ECB is ready to act as soon as June;<\/li>\n<li>EUR\/CAD is about to break a major Daily trend if it falls below 1.5000.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>The 2-year EUR\/CAD uptrend is about to reverse as technicals line up with fundamentals and the pair is about to break below 1.5000. A support break here will confirm the first major reversal signal. The market might not even wait until tomorrow\u2019s Canadian Employment Change and Unemployment Rate, and only a really disappointing print will slow the action down as far as the Canadian Dollar is concerned. Meanwhile, after waiting for a while for volatility to pick up, EUR traders are likely to continue the sell-off for a while. <\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p><img decoding=\"async\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/05\/eurcaddaily.png\" alt=\"EURCAD 8th May\" \/><\/p>\n<p style=\"text-align: justify;\">In March EUR\/CAD reached a major Fibonacci Retracement, more specifically 1.5449 &#8211; 61.8% from 1.7503 down to 1.2127. The pair traded above this level for a few days, as high as 1.5584, before sliding back down at a fast pace.<\/p>\n<p style=\"text-align: justify;\">On the technical side, a break below the large psychological round number 1.5000 represents an invalidation of the bullish trend. A break leads to the first Lower Low in two years. Long-term traders will have begin unwinding their long positions as price falls deeper below this level, which in turn will create more negative pressure.<\/p>\n<p style=\"text-align: justify;\">A secondary pattern, depicting the same story as the trend break, can be observed on the Daily time frame in the form of a Head &amp; Shoulders formation. The Shoulders Tops are lined up perfectly at 1.5304 and the pattern will be activated once price breaks the 1.5 support.<\/p>\n<p style=\"text-align: justify;\">EUR\/CAD has already crossed below the 50 and the 100-Day Moving Averages. The next logical target is the 200-Day Moving Average, currently priced at 1.4572, but price will also encounter an intermediary support level around 1.4788 (price pivot zone from December 2013 \u2013 January 2014).<\/p>\n<p style=\"text-align: justify;\">Daily Stochastic is bearish and heading towards oversold territory, but it\u2019s not there yet. This suggests there is plenty more downside available before price rallies and attempts to create a Lower High (to keep the new trend configuration intact).<\/p>\n<p style=\"text-align: justify;\">Resistance lies above today\u2019s high at 1.5235 and ultimately at 1.5300. Only above the second level the bearish scenario will be invalidated completely.<\/p>\n<p>*********<br \/>\n<em>Prepared by Alexandru Z., Chief Currency Strategist at <\/em><a href=\"http:\/\/www.capitaltrustmarkets.com\/\"><em>Capital Trust Markets<\/em><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment:\u00a0Bearish &nbsp; Key Takeaways Canadian Housing Starts rise to 195K, beating forecast of 177K; Euro rallies then slips hard as Draghi indicates ECB is ready to act as soon as June; EUR\/CAD is about to break a major Daily trend if it falls below 1.5000. The 2-year EUR\/CAD uptrend is about to reverse as &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/08\/eurcad-daily-trend-is-about-to-reverse\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;EUR\/CAD Daily Trend Is About To Reverse&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50686","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=50686"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50686\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=50686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=50686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=50686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}