With a weak Euro over the last few weeks, there has been a lot of focus on EUR/USD and EUR/GBP. And rightly so. Both the US and the UK are having success with the vaccine rollouts, while many EU countries are still on lockdown or under restrictions. In addition, the charts of both pairs look horrible. At a quick glance, EUR/USD looks like it could head down to 1.1602.
Today, EUR/GBP made new lows not seen since February 2020. The pair bounced and formed a doji candlestick. However, this is not too surprising considering the RSI and price were diverging. The longer-term daily chart looks like the pair could head down to 0.8284. One pair that doesn’t seem to be as popular as EUR/USD and EUR/GBP, but could have more room to fall, is EUR/CAD! People should pay more attention to this pair, as some are expecting Canada to be the first to begin tapering! In late February 2020, EUR/CAD screamed higher into the pandemic high on March 19th, 2020 near 1.5994. The pair pulled back through the spring but rallied and tested that level on July 31st. However, EUR/CAD could not break through and began moving in a downward sloping channel towards the spring lows. Price broke lower, forming a double top. The target for a double top is the height of the pattern added to the breakdown point, which is near 1.4118! EUR/CAD is currently trading just above the 127.2% Fibonacci extension from the May 8th lows to the July 31st highs, at 1.4790. There is horizontal support just below at 1.4736. However, if price breaks below there, the pair can fall quickly to the 161.8% Fibonacci extension at 1.4465 and then horizonal support, just ahead of the double top target at 1.4267. Current resistance is at the March 23rd highs of 1.2922 and the double top breakdown point at 1.5058.
Although EUR/USD and EUR/GBP are the more popular Euro pairs to trade, don’t forget about EUR/CAD. The other pairs have room to move lower, but EUR/CAD may fall further!