The euro fell significantly against the Canadian dollar following the recent German court ruling on QE measures by the European Central Bank.
EUR / CAD analysis shows that price is now retesting a key technical area from last month.
Price trend in the medium term EUR / CAD
The euro is again under downward pressure against the Canadian dollar, after a sharp reversal in the technical area of 1.5500.
Earlier this week, a German court ruled on recent ECB policy measures, driving the euro down on the foreign exchange market.
Technical analysis EUR / CAD shows that the pair still has a bullish bias in the medium term while trading above the level of 1.4800.
The daily calendar shows that a major technical breakthrough occurred following a fall from the corners in March of this year and caused a rally of 1,200 points.
Depending on the size of the model, the EUR / CAD pair could still trade much higher in the medium term.
The 1.6200 level remains the broader bullish objective of the medium-term wedge model.
It should also be noted that a huge inverted head-and-shoulders pattern will form if the price approaches the 1.6000 level.
EUR / CAD short-term price trend
The EUR / CAD technical analysis shows that the pair has a short term bearish trading bias while the price is trading below the 1.5330 level.
Looking at the shorter timeframes, the EUR / CAD returns to last week’s breakout area from a falling wedge pattern.
The top of the corner pattern is at 1.5190. This remains the key area that bulls must defend to encourage a rollover towards 1.5500.
A break below 1.5190 could cause sellers to test down the falling corner model, which is around the 1.5000 level.
If the 1.5000 level is broken, a sharp drop towards the 1.4800 support area should be expected.
EUR / CAD technical summary
Analysis of the EUR / CAD prices shows that several models of falling corners are at stake. The bulls must defend the level of 1.5190 to avoid further significant losses.
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