EUR/CAD points to consolidation prior to a decline – TDS

FXStreet (Edinburgh) - According to FX Strategists at TD Securities, the cross could attempt a consolidative pattern ahead of another leg lower.

Key Quotes

EURCAD is displaying some mixed signals; the cross popped higher again late last week off of support near 1.36 area is effectively retesting strong resistance (former range base) at 1.3760/65 again this morning)”.

“The broader trade here is negative after the early 2015 decline in the EUR and the current pattern of trade suggests a consolidation (bear wedge) ahead of another push lower”.

“The intraday trend looks constructive though and while longer-term trend studies are bearish, the lack of alignment across the shorty, medium and long-term studies suggests more a range trade environment at the moment”.

“Trends may not clear up unless or until the EUR moves above (roughly) 1.39 or below 1.35”.

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