The EUR/USD pair has experienced a pullback from its recent highs, facing strong resistance at the 1.12000 level. After two failed attempts to break above this level, the price has corrected to 1.1100, where it found support. Currently, the pair is trading in a range-bound pattern between 1.1200-1.1090.
If the price manages to break and hold below 1.1090, a downward correction towards 1.1050-1.0980 could be expected. On the other hand, if the price consolidates above 1.1200, the upward momentum might resume, targeting levels around 1.1400-1.1300.
Technical analysis suggests a potential deeper retracement as a “bearish harami” pattern has formed on the daily timeframe. Key fundamental factors that could influence price movements include speeches by ECB members and economic data releases from Eurozone and the US.
The EUR/CAD pair is also trading in a range-bound manner, but within a broader range. The price recently tested key resistance at 1.5200, failing to hold above it on two attempts and dropping to 1.4970. Currently, the pair is hovering near the lower boundary of the four-week range between 1.5220-1.4970.
A break below 1.4970 could lead to a continuation of the downward movement towards 1.4880, while a consolidation above 1.5200 might trigger a new upward impulse targeting levels around 1.5600-1.5400.
Key events to watch for the pair include the German Unemployment Rate release and Canadian GDP data tomorrow, which could bring additional volatility to the market.
Both the EUR/USD and EUR/CAD pairs are currently in range-bound patterns, with key levels to watch for potential breakout opportunities. Technical analysis indicates the possibility of further retracement in EUR/USD, while EUR/CAD is poised for a decisive move based on upcoming economic data releases. Traders should pay close attention to these levels and events to make informed trading decisions in the forex market.