EURCAD – rebound from the support area. The end of correction?

After January 20th when EURCAD reached 1.6100 (5 years high), dynamic rebound occurred. Falls lasted 3 days and finished at 1.5245 level which is 38,2% Fibonacci level of earlier uptrend movement. That area was additionally strengthened by the support.

Currently there is a rebound which should reach at least 1.5570 area (nearest strong resistance). Indicated resistance is important for further direction of price movement. If demand breaks it correction may be finished and price will move to a new high. However there is an alternative scenario, when bears will go back and last week’s low will be deepened, entire downward movement will form ABC simple correction. Target for falls could be calculated by equation A=C. Nearest supports: 1.5250, 1.5100, 1.4980. Nearest resistances: 1.5430, 1.5570, 1.5680.

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