EURCAD’s recent extended downside movement puts the pair in an interesting position with possible consolidation and key resistance levels in focus.
Extended Downside Move
EURCAD has pushed its downside activity further from 1.4734, reaching a new low of 1.4498.
Likely Consolidation Phase
The rebound that follows this drop is likely to be a phase of consolidation for the downtrend witnessed previously.
The Role of 1.4569 Resistance Level
Provided the resistance at the 1.4569 level holds firm, we can anticipate a continuation of the downside move. If this scenario plays out, the next target for the pair would be located in the 1.4400 zone.
Key Resistance Break and Its Implications
Conversely, a break above the 1.4569 resistance level would suggest the downside move has already completed at 1.4498. In this scenario, the pair could encounter resistance at the 1.4629 level.
In conclusion, the EURCAD pair is currently witnessing an extended downslope with a potential consolidation phase. The 1.4569 resistance level may hold the key to the next phase in this currency pair’s behavior.