Hello traders! The EUR/CAD currency pair has been trending up very consistently during the past month. Since May 27 up until now, the price has risen by 4%, resulting in a 614 pips growth.
Back on the July 14, there was a break above the triangle pattern after which correction down followed, where pair has re-tested the previous resistance area near 1.5377. We have applied the Fibonacci retracement indicator to this corrective move down in order to see the potential upside targets.
It looks like the nearest resistance is located at 1.6025, which corresponds to the 327.2% Fibonacci retracement level. This is because all previous resistances were broken, and non were rejected, suggesting further growth potential.
Right now EUR/CAD is trading very close to the 50 Simple Moving Average, which might make it very attractive for buyers. Prie can be heading towards the 161.8% Fibonacci support at 1.5697, which is extremely close to the 1.5700 psychological level. As long as daily closing price remains above 1.57 EUR/CAD uptrend is imminent. On the other hand, break below the support will invalidate bullish outlook and price might drop towards 1.5628 or 1.5574 support level.
Bias: Strongly bullish while above 1.5700
Potential Support Zone: 1.5700 – 1.5740
Potential Targets: 1.6024
Have a profitable trading!