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Market View

Is EURCAD near to reversal?

Wednesday, February 6, 2019 4:00 PM GMT

Earlier in the day, there were major news, such as Germany’s Factory Orders s.a. (Previous: -0.2%, Actual: -1.6%) and Canadian Ivey Purchasing Manager Index s.a. (Previous: 59.7, Actual: 54.7).

Reviewing the weekly technical aspect, EURCAD is currently approaching the trendline (T1), forming a Doji candlestick. Additionally, RSI is moving within 40 to 50 level, which is supposed to act supportively during an uptrend. Furthermore, Stochastics is highly oversold.

Weekly

Looking at the daily timeframe, the pair is testing the Daily (R1), while Stochastics is within oversold zone.

Overall, the setup indicates a potential reversal. If price breaks out of the 72.8% Fibonacci retracement level, then the buyers may take the control of the pair.

On the other hand, if price violates the trendline (T1) to the downside, then the market may push the pair to the downside.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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