The positive move in EURCAD that we highlighted on these pages in September proved temporary. Sellers have returned over the last week and the focus has returned to the downside.
The move above the 21 week moving average in the first week of last month confirmed the already bullish signals in the RSI indicator and subsequent upside took EURCAD to our 1.4917 target, a 38% recovery of this year’s decline.
But failure to breach that point on a closing basis, over 5 weeks has led to selling interest returning to EURCAD with last week’s fall of 4 big figures breaking below the spot moving average and the RSI average. An attempt to rally at the beginning of this week has proved weak with today’s decline confirming a new trend.
June’s 1.4257 low if the first EURCAD objective, then this year’s 1.4182 bottom and 1.3963.
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