FX.co ★ Blackpink | EUR/CAD

EUR /CAD Daily Forecast The daily chart for the EUR CAD currency pair indicates bullish momentum that has been in place since February 2022. The market bullish channel has consistently printed higher highs and higher lows and has shown an ascending channel. Market bullish momentum has been confirmed by the price action continuously respecting the upper and lower band of the channel. There has also been an upward bullish channel with lower and upper Fibonacci levels that have been the bulls market price dynamic support levels for the downwards Fibonacci levels. The market bullish price action has disregarded the 23.6% and 38.2% Fibonacci levels. The market has been bullish and has shown aggressive buying action. The foundation of the structure was laid when the price broke above several long-term moving averages in March, turning the broader trend from accumulation to expansion. Since then, the market has stayed comfortably above the 100-day and 200-day moving averages, reinforcing the supremacy of buyers in the larger technical picture. In the recent sessions, the price has retreated from the top channel line around 1.6490 after creating a rejection candle with a large upper wick, which signified that bull pressure was momentarily drained as the market ran into resistance at the ceiling of the channel. The rejection candle was succeeded by a small bearish candle that closed lower than the earlier high, which implied the initiation of a short-term correction in the long-term uptrend. The present candle formation exhibits a small body, reflecting indecision following the recent pullback, as both buyers and sellers carefully considering whether the correction will be deepened towards the mid-channel or support itself near the 1.6200 zone. The bearish tone of the previous candle has imparted a mildly corrective tone in the short term, although the overall uptrend continues to hold as long as the price maintains above the dynamic support trendline extended from the May and August swing lows. The rising structure is also confirmed by several moving averages, which are still trending positively together. The shorter-term 50-day EMA still has considerable distance above the 100-day and 200-day EMAs, and all three are in an uptrend, which strengthens the medium-term bullish tilt. The Fibonacci levels offer unambiguous structural landmarks: immediate support is at the 23.6% retracement at 1.6070, and deeper retracement support is near 1.5790, which is at the 38.2% level and the bottom of the channel. On the positive side, the resistance is strong at 1.6490, the recent high, and a decisive breakout above here could push the pair to new targets near 1.6600–1.6650 on channel extension. On the other hand, if the current pullback continues and the pair closes below 1.6200, the 1.6070 region can be tested before the buyers try to regain control. Momentum indicators indicate that although the trend remains bullish, short-term conditions are becoming mildly corrective. The MACD histogram is still slightly positive, though the lines are converging, indicating weakening bullish momentum. The RSI has been overbought and is now showing a consolidation phase; the RSI is 48. The Stochastic oscillator is showing an oversold condition and thus a probable price rally is expected. The market is undergoing and correcting bullish momentum. There is no reason for bearish positioning in the market. The technical configuration looks bullish with upward price action expected. Evaluating price action, the most recent sequence of candles shows how momentum shifted from extreme bullish pressure capitalization at the channel top to brief consolidation. The long upper wick of the most recent high candle indicated aggressive profit taking, as well as supply emerging at the resistance level. The next, narrow-bodied candle represents balance. This however, is in the sense that sellers were unable to force the price lower quickly. The proximity of balance in price action typically signifies the presence of stabilization before a decisive directional move, often in the direction of the prevailing trend. The formation of higher highs in the next few candles would be indicative of bullish interest above 1.6200 and preservation of the trend channel. Yet, in case the structure breaks below 1.6070, it would be an indicator of a possible medium-term pullback to the lower trend line at 1.5900. Generally, EUR/CAD is structurally bullish with support from a robust rising trend channel and positively sloping moving averages. The latest pullback looks corrective, not trend-reversing, provided the price remains above the 1.6070–1.6200 support area. The indecision of the new candle after a rejection at the top end depicts short-term weakness but not fundamental change. A rally back from here would vindicate trend continuation, and a break below 1.6070 would bring attention to the 1.5900 area before bullish momentum can reassert itself.