Hello traders! EUR/CAD is presenting a very interesting price action. Pair has broken the descending channel as well as the average-price downtrend trendline, suggesting further price increase. On the pullback, EUR/CAD rejected the 50 Exponential Moving average at 1.5568, which occurred on September 11. Then, on September 17 there was an attempt to break below the 1.5568 support. Although 4h candle failed to close below, implying the validity of that support level.
Therefore, as long as 4h closing prices remain above the recent low at 1.5527, the probability of an uptrend will remain very high. While further consolidation can take place, perhaps next week EUR/CAD will initiate an upside move. This could bring the price up, as high at 1.5870 resistance area confirmed by two Fibs, 38.2% and 261.8%, as per the chart below.
Bias: Strongly bullish while 4h closing price remains above 1.5527
Potential Support Zone: 1.5527 – 1.5568
Potential Targets: 1.5870
Have a profitable trading!