Open an Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an Account
✖

EURCAD could be in for a sizable move as it tests key level

Article By: ,  Financial Analyst
January 9, 2018 1:15 PM

The EUR/CAD is an interesting FX pair to watch as it is currently testing a key technical area in the 100-pip range between 1.4735 and 1.4835. Why is this area so significant? Firstly because it was the last noticeable low prior to the rally in early December, which ultimately failed to sustain itself. Thus, if the buyers lose control of this zone then this would only boost the bears’ control. In addition, we have a number of other technical indicators which also converge in this zone, too. These include a bullish trend line, the 200-day moving average and the 38.2% Fibonacci retracement level of last year’s range.

So, if last year’s break above a key resistance at 1.5260 marked a break in market structure then the bulls would like to see the rally resume from here i.e. the 1.4735-1.4835 range. However, if support here breaks down then last year’s breakout above that 1.5260 level can be confirmed as a false move, which is a reversal pattern. So, given the importance of this 1.4735-1.4835 area, we could see a significant move once we know who comes out on top: the bulls or the bears?

A potential break below the abovementioned support range could see price drop sharply towards the 50.0 or 61.6 percent retracement levels next, at 1.4578 and 1.3990 respectively. Meanwhile resistance comes in at 1.4880 and 1.5000, levels which were previously support. If price breaks above these levels then the bulls would want to see a subsequent move above this year’s opening level at 1.5090. This potential scenario would be bullish, in which case we may see a subsequent rally to and possibly beyond last year’s high at 1.5270ish. 

Source: eSignal and FOREX.com.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.

© FOREX.COM 2025