EUR/CAD Candlesticks and Ichimoku Analysis

As euro retreated after early rebound from 1.5231 to 1.5995, suggesting further consolidation within 1.5186-1.6096 would take place and although pullback to 1.5523/25 (approx. 61.8% Fibonacci retracement of 1.5231 to 1.5995) cannot be ruled out, support at 1.5231 should remain intact and bring another rise. Above 1.6096-1.6114 (indicated upper range and current level of the flat ground Ichimoku cloud bottom respectively) would signal an upside break of aforesaid range and bring further rise to upper Kumo (now at 1.6238). Looking ahead, it is necessary to break resistance at 1.6329 would confirm the decline from 1.7509 has ended at 1.5186 and bring further rise towards 1.6500 eventually.

On the downside, in the unlikely event the single currency drops below support at 1.5231 would shift risk to the downside and signal the decline from 1.7509 top has resumed for a retest of 1.5186 and break there would extend weakness towards psychological support at 1.5000 and possibly towards 1.4850.

On the daily chart, although the single currency retreated after early rise to 1.5995 on Monday, as 1.5645 has contained pullback from 1.5995 and euro's rebound from there suggests the rise from 1.5231 would resume for retest of 1.5995, above there would confirm and extend gain towards next chart resistance at 1.6096. Looking ahead, only above this latter resistance level would confirm an upside break of 1.5186-1.6096 range has taken place, then eventual rise towards resistance at 1.6329 would follow.

On the downside, expect pullback to be limited to 1.5700 and bring upmove to aforesaid upside targets. Only a daily close below the Kijun-Sen (now at 1.5616, this would also break previous support at 1.5645) would prolong choppy consolidation and risk fall to 1.5523/25 (approx. 61.8% Fibonacci retracement of 1.5231 to 1.5995), then towards 1.5380/90.