The dominant pattern of the EUR/CAD exchange rate is a six-month descending channel. The Euro bounced off its upper line circa 1.5150 late in October and has since fallen down to 1.48.
During its last wave up in this long-term pattern, the pair was likewise restricted by a junior channel down. This pattern, however, was breached on Friday when Canada’s data release strengthened the Loonie.
Given that the has not since recovered from this hourly plunge, it is likely that the Euro edges slightly higher in this session up to 1.4900/1.4950—area that is reinforced by the 55-, 100– and 200-hour SMAs, the weekly and monthly PPs and the weekly R1.
In case the current sentiment remains unchanged, the base scenario favours the rate moving in line with the dominant pattern and, thus, falling lower. A possible southern barrier in the short-term could be the weekly and monthly S1s in the 1.4700/1.4750 territory.
During its last wave up in this long-term pattern, the pair was likewise restricted by a junior channel down. This pattern, however, was breached on Friday when Canada’s data release strengthened the Loonie.
Given that the has not since recovered from this hourly plunge, it is likely that the Euro edges slightly higher in this session up to 1.4900/1.4950—area that is reinforced by the 55-, 100– and 200-hour SMAs, the weekly and monthly PPs and the weekly R1.
In case the current sentiment remains unchanged, the base scenario favours the rate moving in line with the dominant pattern and, thus, falling lower. A possible southern barrier in the short-term could be the weekly and monthly S1s in the 1.4700/1.4750 territory.