EUR/CAD rebounds should be limited - Natixis

Analysts at Natixis explain that the bullish signal sent by the daily stochastic shows signs of petering out for EUR/CAD cross, while the weekly stochastic is already downbeat, all of which suggests that any rebounds should be limited.

Key Quotes

“A recovery back above the resistance at 1.4345 (daily Bollinger moving average) is unlikely. Watch out rather for pullbacks towards the support at 1.4180 (lower band of daily Bollinger).”

“The utmost caution is in order, as a break below this last support would release significant downside towards the psychologically all-important 1.40 level before the support at 1.3870 (weekly parabolic and ascending support trendline).”

“Take advantage of any rebounds towards 1.4345 to sell the EUR/CAD, with as first target 1.4180 (setting the stop loss above 1.4480).”