- EUR/CAD has been trading a 'Symmetric Triangle' pattern and finds strong support at 1.4624 (20-DMA).
- The pair is extending gains after bounce off 200-DMA and we see scope for further upside.
- Technical studies support upside in the pair. 5-DMA has turned and RSI converges with price action.
- Price action is bound between 50 and 200 day moving averages, breakout above 50-DMA (1.4758) could see test of triangle top at 1.50.
- Break below 200-DMA at 1.4540 finds next major support at triangle base at 1.4495.
Support levels - 1.4677 (5-DMA), 1.4623 (20-DMA), 1.4540 (200-DMA), 1.4485 (triangle base), 1.4442 (Sept 14 low)
Resistance levels - 1.4695 (38.2% Fib retrace of 1.3784 to 1.5258 rally), 1.47, 1.4758 (50-DMA)
Recommendation: Watch out for breakout above 50-DMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 43.7718 (Neutral), while Hourly CAD Spot Index was at -34.445 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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