EUR/CAD Candlesticks and Ichimoku Analysis
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Doji star |
6 July 2009 |
Down |
| Daily |
Doji star |
26 Jan 2010 |
Down |
Although the single currency continued to fall according to our expectation in the previous update and met our indicated downside target at 1.4000, as the Tenkan-Sen has just started to turn sideways, suggesting recent selloff is likely to slow down and further sharp fall below 1.3800 may not be repeated and reckon 1.3773 (100% projection of 1.7509 to 1.5186 measuring from 1.6096) would hold and bring rebound later.
On the upside, it is expected to see recovery to 1.4100 and possibly towards 1.4300, however, only a weekly close above the Tenkan-Sen (now at 1.4496) would suggest a temporary low is in place and bring retracement of recent decline to 1.4650 and later towards 1.4800 but price should falter well below the Kijun-Sen (now at 1.4999) and bring another decline later.
On the daily chart, although the single currency recovered from 1.4101 to 1.4438 earlier, the currency pair met renewed selling interest well below the Kijun-Sen as suggested and fell again from there to our indicated downside target 1.4000, however, weakening of near term downward momentum should prevent sharp decline below 1.3861 (61.8% projection of 1.5034 to 1.4101 measuring from 1.4438) and reckon 1.3773 (100% projection of 1.7509 to 1.5186 measuring from 1.6096) would hold, bring a much-needed correction later this month.
On the upside, expect recovery to 1.4100, however, it is necessary to see a daily close above the Tenkan-Sen (now at 1.4171) to provide the first sign that a temporary low is possibly formed, then correction towards the Kijun-Sen (now at 1.4372) would follow. Looking ahead, only breach of resistance at 1.4438 would confirm low and then stronger retracement of recent decline would take euro higher towards 1.4550.
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