Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

EUR/CAD: sell targets - 1.3400 and 1.3300

By: Dima Chernovolov

  • EUR/CAD reversed from resistance zone
  • Next sell targets - 1.3400 and 1.3300

EUR/CAD recently reversed down sharply from the resistance zone lying between the resistance level 1.3750 (which earlier reversed the pair numerous times in March and April, as you can see from the daily EUR/CAD chart below), the upper daily Bollinger Band, the 50% Fibonacci Correction of the preceding downward impulse from February and the former support trendline of the recently broken down channel from last August (acting as resistance now after it was broken).

The downward reversal from the aforementioned resistance zone created the daily Japanese candlesticks reversal pattern Bearish Engulfing. EUR/CAD is likely to fall further inside the active (b)-wave toward the next sell targets 1.3400 and 1.3300.

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