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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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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