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FxWirePro: EUR/CAD uptrend loses steam, remains on bullish path

• EUR/CAD   initially dipped but recovered some ground  as investors assessed messages the day before from the Bank of Canada  central bank cut interest rates.

• A dovish Bank of Canada, despite offering no forward guidance left the loonie vulnerable to further euro strength.

• On Wednesday, Canada’s central bank trimmed its key interest rate to 2.5%, a three-year low, marking its first rate cut since March and leaving the door open for more reductions should downside risks intensify.  

• Adding to headwinds for the loonie, the price of oil was down 0.9% at $63.48 a barrel. Oil is one of Canada's major exports.

• Technical are bullish, daily RSI is bullish  at 60, daily momentum studies  14 and 21 DMAs are trending up.

• Immediate resistance is located at 1.6350(23.6%fib), any close above will push the pair towards 1.6384(Higher BB).

•     Support is seen at 1.6167(SMA 20) and break below could take the pair towards 1.6080(38.2%fib).

Recommendation: Good to buy  around 1.6250 , with stop loss of 1.6150 and target price of 1.6350

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