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EUR/CAD making lower highs and downside bias prevails

FXStreet (Guatemala) - EUR/CAD is trading at 1.4084, down -0.29% on the day, having posted a daily high at 1.4178 and low at 1.4074.

EUR/CAD has found buyers at 1.4080 post closing the bullish gap from supply at 1.4160, from where we busted through 1.4120 support and continued, triggering buyers stops until current levels. Fundamentally, the EUR is being driven by a re-emergence in the greenback while ECB’s president Draghi highlighted Europe’s requirement for their easing measures of monetary policy in s speech I Europe.

Technically, analysts at TD Securities explained that the EUR/CAD’s inability to recover significantly through the 1.42 area keeps the focus on the downside for the cross as the steady decline in price over the past few months maintains pressure on the 1.40 support zone while recoveries are stalling at progressively lower levels.

“The base at 1.40 looks firm in the short run but the underlying trend lower remains strong and a recovery through 1.45 is required from here to alleviate downside pressure. We continue to feel that the broader set up here favours a drop to the 1.35/1.38 range in the months ahead. Look to fade rallies or re/build shorts below 1.40” – TD Securities

EUR/CAD noteworthy short term levels

Current price is 1.4085, with resistance ahead at 1.4126 (Weekly Classic PP), 1.4128 (Hourly 20 EMA), 1.4129 (Hourly 100 SMA), 1.4140 (Daily Classic PP) and 1.4147 (Daily Open). Next support to the downside can be found at 1.4079 and 1.4065 (Daily Classic S1).

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