- EUR/CAD consolidating upside at 2-month highs hit on Monday, bias higher.
- German Oct business climate index unexpectedly rose to a record high after falling for two months in a row boosting EUR.
- The pair is up 0.22% on the day, has paused upside just shy of 61.8% Fib retrace of 1.5263 to 1.4447 fall at 1.4951.
- Break above will see further upside, scope then for test of 1.5075 (Aug 29 high).
- The pair is trading in a 'Symmetric triangle' pattern and price action currently hovering around triangle top. Breakout to propel pair higher.
- Focus now on BoC policy meeting. Markets expect no change in rates and a dovish message taking into account the latest round of data.
Support levels - 1.49, 1.4872 (5-DMA), 1.4755 (20-DMA)
Resistance levels - 1.4951 (61.8% Fib retrace of 1.5263 to 1.4447 fall), 1.5018 (Aug 11 high), 1.5075 (Aug 29 high)
Recommendation: Good to go long on break above 1.4951, SL: 1.4870, TP: 1.50/ 1.5020/ 1.5075
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 28.5811 (Neutral), while Hourly CAD Spot Index was at -36.6318 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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