EURCAD bearish breakdown ahead of ECB

Short-term technical outlook on EUR/CAD

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Key Levels (1 to 3 days)

Intermediate resistance: 1.4530

Pivot (key resistance): 1.4580

Supports: 1.4450 & 1.4410/4380

Next resistance: 1.4700

Directional Bias (1 to 3 days)

Bearish bias below 1.4580 key short-term pivotal resistance for a further potential downleg to target the next near-term supports at 1.4450 and 1.4410/4380

On the other hand, a clearance with an hourly close above 1.4580 kickstarts a corrective rebound towards the key medium-term resistance at 1.4700,

Key elements

• The EUR/CAD cross pair has staged a bearish breakdown below a former major ascending support in place since Aug 2012 low now turns pull-back resistance t 1.4580 (see weekly chart).
• In the short to medium-term, the EUR/CAD is evolving within a minor descending channel in place since 26 Aug 2019 high with the upper boundary of the descending channel acting as at resistance at 1.4580 that confluences with the 23.6% Fibonacci retracement of the recent decline from 26 Aug 2019 high to yesterday, 10 Sep 2019 low of 1.4500.
• The next significant near-term support rests at 1.4410/4380 which is defined by the lower boundary of the minor descending channel and a Fibonacci projection cluster.
• Short-term downside momentum of price action remains intact as indicated by the 1-hour RSI oscillator where it still has room to manoeuvre to the downside before it reaches an extreme oversold level of 19.

Charts are from eSignal