The EURCAD price line has been ascending within a bullish channel since early November 2022. The price line made some reactions to the middle, lower and upper lines, but it failed to break through this channel yet. Therefore, it is considered as a valid bullish channel. The RSI is now above 50 and has recently issued a negative divergence signal, indicating a possible downtrend on the chart. The MACD histogram turned light red and the MACD line and the signal line went through a cross over. The candle patterns on the hart reflect weakened bullish power on the chart. Traders can look to the price line and expect it to touch the demand zone formed at about 1.41000. There they can take short positions towards the support levels shown below.

• There is a resistance level at 1.41205 followed by resistance at 1.42328 and 1.43500.

Note: We do not suggest any investment advice, and these analyses are just to increase the traders’ awareness but not a certain instruction for trading.

FXix (1)