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Chart Art: EUR/CAD’s Trend Pullback

November 3, 2023| Forex Market

Trend warriors gather ’round! EUR/CAD is testing a key inflection point after turning lower from its intraweek resistance.

Which potential support levels should you watch out for?

We’re taking cues from the 4-hour chart today:

EUR/CAD 4-Hour Forex

EUR/CAD 4-Hour Forex Chart by TradingView

As you can see, EUR/CAD has been making higher highs and higher lows since the start of October when the pair bounced from the 1.4200 psychological handle.

Feeling FOMO over EUR/CAD’s uptrend? We may have a chance to jump in.

The pair is currently trading closer to 1.4600, which is just above a trend line that’s been around all October. EUR/CAD’s current levels are also not far from the potential support from the 100 SMA and S1 (1.4530) Pivot Point in the 1-hour time frame.

EUR bulls who believe that EUR/CAD’s uptrend is still a friend can consider long positions near the area of interest that we’ve marked.

The 1.4750 previous highs looks legit as initial targets but you can also consider the 1.4800 August highs if we see enough bullish momentum.

Feel like EUR bulls are done dumping pips on CAD traders?

We have mid-tier reports due from the Eurozone including Germany’s trade balance, France’s industrial production, and the Eurozone’s final services PMI. Meanwhile, Canada is set to print its September labor market numbers.

This means that an extension of EUR/CAD’s uptrend is NOT a done deal.

If you’d rather bet on EUR/CAD’s downswing turning into a bearish reversal for the pair, then you can also place short orders below the trend line and 100 SMA zone in the chart.

Good luck trading this setup and make sure to use stop losses when trading currency cross pairs like EUR/CAD!

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