According to my previous analysis of EUR/CAD, the demand area remains strong support and was tested once again yesterday. At the same time, the price hit a new high
confirming the validity of a major uptrend that should result in
further extensions up.
Consider buying EUR/CAD this week while it remains
near S1 (1.4000) support / demand area targeting 161% retracement
level of the Fibonacci applied to the trend-line breakout point – R2
(1.4640). Although the strong support is at S1, some spikes are still
possible and therefore it would be reasonable to place stop loss
below S2 (1.3868). A break below S2 would invalidate these analysis and
would trigger a consolidation on the EUR/CAD.
Support: 1.3983, 1.3868
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