EURCAD - Temporary retracement

EURCAD (1H) - short term bearish bias

As per our previous forecast on this pair, the euro's advance came to a halt at the 1.4770 supply area. We would expect the pull back to last until the price reaches the previous low of 1.4550. The latest rally toward 1.4650 has proved to be short-lived after an engulfing bearish candle put buyers under pressure. The RSI indicator hovered right under the over-bought zone which suggests an exhaustion of the rebound. 1.4600 will be the immediate level to monitor and its breach could trigger a larger sell-off.

Key support: 1.4550
Key resistance: 1.4670