Daily Price Action

EURCAD Breaches Wedge Resistance, Targets 1.4732


In the most recent weekly forecast, I mentioned the terminal pattern that has been forming on EURCAD since the April high at 1.5028. At the time the pair had not yet signaled its intended direction, which left us on the sidelines.

However, during yesterday’s session, the Euro cross managed a 4-hour close above wedge resistance followed by a daily close 25 pips above the key level. The technical break now has us watching for a retest of the 1.4640 area as new support.

But before you hurry off to place your order, keep in mind that the latest non-farm payroll report is scheduled for 8:30 am EST. While the event tends to cause the most volatility among the majors, a cross like EURCAD is not entirely immune from its wrath.

Two events that will directly affect the pair are Canada’s trade balance and labor productivity figures, both of which are also set for an 8:30 am EST release.

With all of that said, one thing I’ve learned over the years is that everyone needs to do (or not do) what he or she feels is in their best interest. For the risk averse, waiting for the dust to settle following tomorrow’s NFP report may be the way to go, while others may not mind taking some heat during the event. Whatever the case, what’s important is that you’re comfortable with the risk.

Should yesterday’s break hold and thus push prices higher, the first area of resistance comes in at the April high at 1.4732. Beyond that, there isn’t much stopping EURCAD from reaching the top of the wedge pattern at 1.50.

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EURCAD key technical break

Leave a Comment:

Ali Senejani says

Hi Justin. Thank you for the great analysis.
I have been watching this pair since you released the weekly forecast. I am waiting for a retest around 1.464485-1.46400 support zone for an early entry.
I will lock in profits before NFP and CAD data releases to avoid any huge drawdowns….

If price goes in the direction of the price action, then good, if not I will not lose anything and I will look for better opportunities after the dust settles down.

Abraham Olatubosun says

Hi Justine I want to thank you for the head up, I will wit till after the NFP to look out if finally the USD will drop or raise. Thanks

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