EUR/CAD has been moving upwards for a very extended period of
time in the longer time frame. In the smaller, H1 scale, the picture is very much alike: a very strong bullish trend with no signs of weakness.
The pair formed a strong resistance near 1.4450, that on the
11.08 was broken. The very same level has acted as support that was rejected,
once again confirming the validity of the uptrend. The price remains above the 200
Moving average and this week rejected the ascending channel as well as an uptrend
As the trend remains so bullish, consider buying EUR/CAD
today while it trades between the current level – the psychological support (1.4500)
and S1 (1.4450). The R1 resistance – 161.8% Fibonacci retracement level
(applied to the 31.07 high and 07.08 low) was broken and it would be reasonable
to target next Fibs 261.8%, marked R2 (1.4752). To stay on the safe side, the
stop loss must be well below S1; however, long trades with tight stop loss might
also play out well.
Resistance: 1.4565, 1.4752
The material has been provided by InstaForex Company – www.instaforex.com