Moving away from the majors – check out the Canadian dollar

EUR/CAD daily chart
EUR/CAD daily chart

With end of month approaching and national holidays across most of Europe tomorrow (Ascension Day), this may a good time to look at alternative currencies which are reaching extreme overbought or oversold conditions. Examples include the Commodity Dollars, the Canadian in particular which is heavily overbought on the daily chart and on the faster time frames. Meanwhile the New Zealand Dollar is heading south and the Swiss Franc is bumping along the bottom.

Given the above, one pair to consider may be the EURCAD which has seen a modicum of buying in the past couple of days at the 1.4790 area and is now approaching the 200 ma. However, the pairs has recently breached a support region at the 1.4818 region and is trading at time of writing at 1.4784. Ideally, what we want to see here is an increase in volumes representative of further buying with a move back first through the 1.4818 area, and preferably the second level of resistance at 1.4898. This should then provide a solid platform for a longer term upwards trend for this pair.

By Anna Coulling

 

 

About Anna 1036 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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