Nick Nasad
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EUR/CAD - Pierce of Support A "Sling-Shot" Setup Or Sign of Further Retracement?

The EUR/CAD had a very strong run during the 2nd half of November, but its rally stalled out around the 1.4655/1.4695 area.

  • The pair has been in well established sideways consolidation range since topping out.
  • Now, it finds itself in an interesting position as the pair breached the support of that range at the 1.4530.
  • This type of action can be one of 2 things. 1) It's a way to knock out some stops below support, after which the pair "slingshots" higher and resumes the old trend higher.
  • Or 2) It the first sign of the sideways action over the last 2-3 weeks being a top, which is followed by a further retracement/correction. Some obvious levels to the downside include 1.4440 as well as the 55-EMA which comes in around 1.43.