EURCAD has been dominated by the post election upside reversal that sent the cross back below the 21 week moving average and, just as importantly, sending the RSI indicator below it’s own moving average.
That renewal of negative momentum took EURCAD to 18 month lows in December before the market attempted to rally. But two subsequent rally attempts failed, and attracted fresh sellers at the mid-point of the weekly Keltner channel (13 week average) and, on neither occasion did RSI threaten its average line.
Although last week saw the most negative EURCAD levels since June 2015 rejected, that bounce has proved even more limited with the 13 day moving average capping and driving prices lower this week.
A move through last week’s low will be confirmation of an increasingly bearish tone in EURCAD with the market then focusing on 1.3637 and 1.3464.
About FX Renew
This blog post was published on www.fxrenew.com, a provider of Forex signals from ex-bank and hedge fund traders (get a free trial). If you like this post, subscribe to the blog for free or get free access to the acclaimed Advanced Forex Course for Smart Traders.
The post EURCAD – Selling Pressure Resumed appeared first on www.forextell.com.