A fall in oil prices puts pressure on the loonie against USD and Euro. Ahead of Canada housing data, CAD is trading lower against the euro. The cross has been facing strong resistance at 1.4030. For consecutive 3 weeks, the cross has been unsuccessfully trying to breach this resistance. In case of a weekly close above 1.4030, bulls will head towards 1.4150 and 1.4250. The 50Msma is found at 1.3780. In the daily chart, the cross managed to close and trading above all the moving averages. As of now, the cross is unable to breach yesterday’s high.
on the H1 and H4 charts, the cross has been making higher lows. The fresh up move looms above 1.4030 with targets at 1.4050, 1.4090, and 1.4120 in the extreme case. In case of positive readings for Canada housing, the cross will fall back towards 1.3920 initially, and towards 1.3850 later. The panic is likely to trigger below 1.3890 during a day.
The material has been provided by InstaForex Company – www.instaforex.com