After testing the bottom at 1.3025, EUR/CAD started to move higher. New higher highs were achieved without any signs of weakness that could attract buyers and push price even higher.
The descending channel has been broken. Fibonacci levels applied to the breakout point show that there is significant support at S2 (1.3507) that has been tested for tree times. It has been rejected continuously. The price tested R1 (1.3806) resistance level and rejected it. However, the bullish divergence on the RSI oscillator suggests that the corrective move up might be not over yet.
Consider buying EUR/CAD at the current level targeting at R2 (1.3990) as this is where the next Fib resistance (23.6%) is seen. Only a break below the Doji candle low (1.3426) could result in a further decline.
Support: 1.3658, 1.3507,
Resistance: 1.3806, 1.3990
The material has been provided by InstaForex Company – www.instaforex.com