Technical Analysis – Will EURCAD uptrend hold or reverse on double top?
February 26, 2014 10:02 am
EURCAD has been in a strong uptrend in recent months, climbing to a more-than 4-year high. The market has stalled after reaching the 1.5300 area. The upper Bollinger band is also capping the market around this area.
After breaching 1.5200 the pair accelerated higher to form a top at 1.5303 before falling back to find support at 1.4912. This is the 23.6% Fibonacci level of the move from the September 6 low of 1.3645 to the January 29 high of 1.5303.
The pair then bounced again to reach a high of 1.5345 on February 21 and is consolidating around this level. It remains to be seen whether a second top is forming. This will double top reversal pattern will be confirmed once the neckline at 1.4912 is broken to the downside and will cancel the bullish trend. If this support level fails, then the next support level at 1.4674 will be targeted. This is the 38.2% Fibonacci level and below this is the 50% Fibonacci at 1.4475.
Technical indicators are on the weak side and signal the strong bullish uptrend has stalled. MACD has declined and RSI has fallen below 70.
EURCAD has been in a strong uptrend in recent months, climbing to a more-than 4-year high. The market has stalled after reaching the 1.5300 area. The upper Bollinger band is also capping the market around this area.
After breaching 1.5200 the pair accelerated higher to form a top at 1.5303 before falling back to find support at 1.4912. This is the 23.6% Fibonacci level of the move from the September 6 low of 1.3645 to the January 29 high of 1.5303.
The pair then bounced again to reach a high of 1.5345 on February 21 and is consolidating around this level. It remains to be seen whether a second top is forming. This will double top reversal pattern will be confirmed once the neckline at 1.4912 is broken to the downside and will cancel the bullish trend. If this support level fails, then the next support level at 1.4674 will be targeted. This is the 38.2% Fibonacci level and below this is the 50% Fibonacci at 1.4475.
Technical indicators are on the weak side and signal the strong bullish uptrend has stalled. MACD has declined and RSI has fallen below 70.
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