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Technical Analysis – EUR/CAD

EUR/CAD 23/02/2018 | EconAlerts

FXG-FEB-LC-IB-728x90-EN | EconAlerts

EURCAD trades around 2-year high; bullish bias but the possibility of an overstretched rally.

EUR/CAD has advanced considerably since roughly the beginning of the year, hitting a two-year high of 1.5687 during Thursday’s trading. Price action is at the moment taking place not far below this peak.

The Tenkan-sen line being above the Kijun-sen one is pointing to a bullish short-term momentum. However, the Chikou Span suggests that the recent rally might be overextended, rendering a pullback in the near-term a possibility.

Price advances could meet resistance around yesterday’s high of 1.5687 – including the 1.57 handle that may be of psychological importance – with stronger bullish movement turning the attention to the 1.58 level that could also hold psychological significance.

On the downside, the area around the current level of the Tenkan-sen at 1.5569 might offer support, with a violation of this area increasingly bringing the Kijun-sen at 1.5433 into focus.

The medium-term picture is positive: price action is taking place above both the 50- and 100-day moving averages, as well as the Ichimoku cloud. In addition, both MA lines maintain a positive slope.

Overall, both the short- and medium-term outlooks are looking bullish, with the possibility of an overstretched market in the short-term being in place.

EUR/CAD 23/02/2018 | EconAlerts



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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

source: XM

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