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EURCAD Price Action Breakdown

The EURUSD pair remains weak, with key support levels at 1.0176 and the significant parity level at 1.0000. On the upside, resistance is at 1.0436 and 1.0486, while the broader downtrend will likely continue unless the pair breaks above 1.0775. The US Dollar has been under pressure due to disappointing economic data and uncertainty around Federal Reserve policies, while the Euro struggles with weak growth in Europe, especially in Germany. Both central banks—the Fed and ECB—are expected to tread cautiously, with potential rate changes depending on inflation and economic conditions. Investors will watch closely for updates on financial data and policy shifts to gauge the pair’s next moves.

EURCAD – D1 Timeframe

Typically, when price breaks structure on the higher timeframe with a Fair Value Gap, it tends to climb back towards the gap in an attempt to fill it. Currently, on the daily timeframe chart of EURCAD, we find prices inching back towards the FVG region, with further confluence from the rally-base-drop supply zone at the origin of the impulsive move. Let’s see the lower timeframe now.

EURCAD – H4 Timeframe

On the 4-hour timeframe chart, we are presented with an SBR pattern arising from the sweep above the previous high, followed immediately by a break of structure. The retest of the supply zone is the preferred point of entry since it enjoys further confluence from the trendline resistance and is located at the 88% Fibonacci retracement level.

Analyst’s Expectations:

  • Direction: Bearish
  • Target: 1.47235
  • Invalidation: 1.50865

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