- EUR/CAD is on the backfoot but dynamic support could play a role in a bullish correction.
- Bears will target a downside extension from the daily W’s neckline resistance area.
EUR/CAD on the brink of an upside rejection according to the daily chart’s structure. The following is a top-down analysis that supports a bullish bias for the near term before a downside continuation into familiar weekly support.
Monthly chart
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The price is trapped between a monthly support and resistance areas.
Weekly chart
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The price is attempting to break out to the upside but has failed and the support zone is compelling.
Daily chart
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As illustrated, the W-formation on the daily chart offers a the case for the upside to the neckline and prior resistance/support structure.
The dynamic support would be expected to hold and there is a high probability that the price will retrace at least a 38.2% Fibonacci retracement of the latest bearish impulse.
In doing so, the price would then be expected to continue in the bearish trajectory to challenge the familiar support area.
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