EURCAD: The Year(s) Ahead
It's a rather bold move on my part to publish a prediction just before the weekend in which we will find out the first round results of France's election. The consensus among retail traders is binary: either the EUR will rocket upward or plummet downward in response to the election of Macron or Le Pen, respectively. I would like to think that this mode of thinking is a bit too simple, and that the election of a favorable candidate only temporarily suspends investor's apprehension toward the single currency market. Regardless of emerging fundamentals, the confluence of several trend lines (predominantly resistant in nature) puts considerable downward pressure on EURCAD. While several local trend lines of resistance (indicated in red) intersect ahead of future price action, an all-time trend line resistance level (indicated as red dotted line) that forms when connecting the all-time high (Oct. 1998) with the second highest point of price action (2009) cuts right through this web of resistance. That being said, EURCAD faces asymmetric forces of support / resistance with bias to the downside on a technical basis.
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