EUR/CAD forecast for February 17,2021
Looking at the chart on the weekly time frame, we see that the EUR/CAD pair is under a lot of pressure and is slowly descending to the chart’s lower levels.
The moving averages of the MA20 and EMA20 have long been on the bearish side, and the MA50 has now become resistant, and all of them together are technical indicators that we can expect the bearish trend to continue.
The strong oil price has helped the Canadian dollar gain strength, the jump in oil prices has exceeded $ 60 a barrel, and global vaccination against coronavirus reduces the risky mood among investors and pushes the price of oil, thus strengthening the Canadian dollar.
On the daily time frame, we see that the Euro is under a lot of pressure and that the EUR/CAD pair has fallen below all moving averages, a retest has been made on the EMA200, and we can now expect the decline to continue looking for better support on the chart.
We are now looking at the previous low at 1.52600 and whether the support will last, and if we see a break below that, we are sliding towards 0.52000, and we are getting closer to 1.50000 higher psychological support.
We first need better support for a possible bullish scenario, a break above the MA20 and EMA50, a break above the upper resistance line, and entry into a safer zone above 1.54000.
We see that the EUR/CAD pair has been in a downward trend for the last two months on the four-hour time frame. If we only follow the moving averages, we see that MA20 and EMA20 follow the price movement, while MA50 represents higher resistance and is a good indicator of future short-term trends in this time frame.
Since the EUR/CAD pair is bearish, we will pay attention to the previous low, 1.52600, whether we will see break or rejection and start pullback. Technically, the trend is bearish with possible minor consolidation to the top line within this descending channel.
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