7 Apr 2015
EUR/CAD prospects turning bearish – TDS
FXStreet (Edinburgh) - In the view of strategists at TD Securities, the outlook for the cross could be turning towards the negative side.
Key Quotes
“EURCAD looks soft again; the cross has firmly rejected the latest test of resistance (former channel base) in the upper 1.37 area (via a bearish outside range session yesterday), has eased under short-term trend (bear wedge base) at 1.36 so far today and is putting short term support at 1.3530 under pressure”.
“We think 1.3530 may be key to the move lower extending quickly from here after the repeated failures in the upper 1.37 zone (1.3530 is effectively the neckline of a double top on the short-term charts and targets a quick drop to 1.33 on a break lower)”.
“Trend momentum studies are aligning bearishly across a range of timeframes which will enhance downside prospects and limit near-term counter-trend corrections”.
Key Quotes
“EURCAD looks soft again; the cross has firmly rejected the latest test of resistance (former channel base) in the upper 1.37 area (via a bearish outside range session yesterday), has eased under short-term trend (bear wedge base) at 1.36 so far today and is putting short term support at 1.3530 under pressure”.
“We think 1.3530 may be key to the move lower extending quickly from here after the repeated failures in the upper 1.37 zone (1.3530 is effectively the neckline of a double top on the short-term charts and targets a quick drop to 1.33 on a break lower)”.
“Trend momentum studies are aligning bearishly across a range of timeframes which will enhance downside prospects and limit near-term counter-trend corrections”.