EUR/CAD Candlesticks and Ichimoku Analysis

	Last Candlesticks pattern	Time of formation	Trend bias
Weekly	Doji star	6 July 2009	Sideways
Daily	Bearish engulfing	28 June 2009	Down

Although the single currency dropped sharply lower to 1.5231 (exceeded our downside target at 1.5300), as euro found decent demand above indicated key support at 1.5186 and staged a strong rebound from there. A possible bullish pattern was formed on the weekly chart and price is currently testing the Kijun-Sen and gain to 1.6000 is likely, however, it is necessary to see a weekly close above the resistance at 1.6096 to retain bullishness and signal the decline from 1.7509 has ended at 1.5186, then headway to the Ichimoku cloud top (now at 1.6271 would follow but reckon resistance at 1.6329 would hold from here.

On the downside, whilst pullback to 1.5600 cannot be ruled out, as long as 1.5500/05 holds, bullishness remains for subsequent rise to aforesaid upside targets. Only a drop below this level would dampen our bullish view and risk fall to 1.5360/70 and possibly 1.5231 but key support at 1.5186 should remain intact and bring further choppy consolidation.

Based on ActionForex.com Technical Outlook