The Euro to Canadian dollar (EURCAD) exchange rate positively tested both the horizontal resistance and the upper limit of the channel yesterday. As a result of this test, a bearish formation – outside bar was formed, after which the quotations were decreasing also on Friday.

As can be seen on the EURCAD daily chart below, the significant resistance is located within the level 1.4705, and the upper band of the canal is higher. Yesterday’s attempt to continue growth above these levels was unsuccessful and opened the way for falls.

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EURCAD Daily

The nearest support can now be provided by the broken downward trend line starting from the peak in December 2018. Below, around 1.4550, we will find horizontal support, which was the starting point of the last upward impulse.

Alternatively, the negation of maximum of the outside bar would open the way for further increases to 1.4850 – 1.4875.

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Since 2010, he has been actively involved in the Forex market up to now. He is a supporter of Price Action and using as few indicators as possible. He believes that the simplicity of the system and consistency in its application is the best way to success in financial markets, and lack of patience is the most frequent cause of failure. Interested in classical systems based on Technical Analysis and in psychology - mechanisms that guide human behavior and conditioning decision making in trading.