EUR/CAD chart on Trading View used for analysis
- EUR/CAD has retraced from session highs at 1.5115 and is currently trading at 1.5093 at 0800 GMT.
- The pair has paused upside shy of 200-DMA, breakout to see further upside.
- We see a bullish 5-DMA crossover on 20-DMA which adds to the bullish bias.
- RSI is above 50 and Stochs are biased higher. MACD also supports upside in the pair.
- Focus on BoC and ECB monetary policy meetings this week for clear directional bias.
- The BOC’s is likely to remain on hold, hiking cycle appears to have ended for now.
- The recent soft patch in Eurozone data and waning inflationary pressures are likely to see no action from the ECB at least until Q3.
- Market focus will be on any changes to the wording of their policy statements for cues.
- Breakout at 200-DMA will see upside till 1.5348 (61.8% Fib). Retrace below 21-EMA to see weakness.
Support levels - 1.5072 (55-EMA), 1.5017 (21-EMA)
Resistance levels - 1.51, 1.5139 (200-DMA)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
