, break above to see further upside - EconoTimes)
EUR/CAD chart on Trading View used for analysis
- EUR/CAD is seen extending gains after break above strong trendline resistance at 1.5225, bias higher.
- The single currency is likely catching a bullish bid amid recovering risk appetite through the broader markets.
- Confidence is recovering as EU-UK Brexit negotiations take a much-needed turn for the better.
- On the other side, the Bank of Canada (BoC) held policy rate steady at 1.5% in September meeting, as expected.
- The policy statement which followed was in keeping with Poloz’s comments at Jackson Hole.
- The policy statement highlighted that the bank saw elevated trade tensions as a key risk to the global outlook.
- It noted that the central bank was following NAFTA developments closely due to their potential impact on the inflation outlook.
- Technical picture confirms upside after a bullish break at strong trendline resistance at 1.5225.
- 200-DMA at 1.5359 is strong resistance. Breakout at 200-DMA eyes 50% Fib at 1.5476.
Support levels - 1.5316 (38.2% Fib), 1.5253 (5-DMA), 1.52 (Trendline support)
Resistance levels - 1.5359 (200-DMA), 1.54, 1.5476 (50% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-breaks-strong-trendline-resistance-at-15225-good-to-stay-long-on-dips-1424433) has hit TP1.
Recommendation: Book partial profits at highs. Watch out for break above 200-DMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 104.821 (Bullish), while Hourly CAD Spot Index was at -102.984 (Bearish) at 0345 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
