Weekly Technical Outlook: EUR/CAD; Market Forecasts for November 16th – November 20th

• Resistance level   1.4496, 1.4604, 1.4725
• Pivot Level  1.4272
• Support Level  1.4165

Technical Analysis

EUR/CAD is looking for consolidation pattern from 1.4165 levels and is still in progress with strong support holding the levels tight. The price action produced strong bullish engulfing bar reversal candle indicating a shift in momentum to an upside bias with pair closing above trend line. The pair looks for corrective upward bias and confirming a bullish movement. Medium term rally is still in progress.

Sustained trading above 1.4272 will confirm strong long term momentum. This will remain the favored case as long as support holds and would pave the way to reach level at 1.4496. A breaks here can expect levels of 1.4604 and later at 1.4725. Meanwhile, we’re uncertain on the time needed to complete the consolidation and the strength of the rebound. But in any case, break of 1.4165 levels will dampen our bullish view on the pair and should continue with the current momentum to downside and make new lower low.

Outlook remains bullish for week.

Economic

• Consumer Price Index
• ECB President Draghi’s Speech, ZEW Survey Economic Sentiment
• Non-monetary Policy ECB’s Meeting, followed by Monetary Policy ECB’s Meeting Accounts
• Manufacturing Shipment for the Canadian, BOC Review
• Housing Starts followed by Wholesale Sales, Consumer Price Index

 

Area of Interest

• Strong support at 1.4165 area and close above the trend line.
• Bullish Engulfing bar reversal with movement strongly holding the support area.
• Price action closed above support level and above trend line indicating shift in momentum.
• At Flip Area on Daily time frame supporting levels.

For more detailed analysis from the author, please visit NoaFX.