Following my previous EUR/CAD analysis, the price did reach the
downside target and started to climb up. Regarding to the current
market, EUR/CAD broke below the uptrend trendline and rejected 23.6% Fibonacci support
level, that was applied to the trendline breakout point S4 (1.3571).
The key resistance was found at S1 (1.3866), which was broken
and should act as a key support and demand level now. It is obvious that today
S1 has already been rejected adding more confidence to the continuation of the uptrend. The pair is trading above 200 Moving Average that has been
rejected several times.
Consider buying EUR/CAD between the current level (1.3925)
and S1 (1.3866) with a target at 1.4640, which is 161.8% Fibs. For more
aggressive trade, S2 (1.3775) can be used as a stop loss, although S4 (1.3388)
remains the key support level for the long-term uptrend.
Support: 1.3866, 1.3775, 1.3684, 1.3571
Resistance: 1.4162, 1.4640
The material has been provided by InstaForex Company – www.instaforex.com