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8 May 2015
EUR/CAD: Downside limited to 1.3400/50 area
FXStreet (Guatemala) - EUR/CAD is currently trading at 1.3557 with a high of 1.3682 and a low of 1.3544.
EUR/CAD has been testing the downside on a drift and is tracking the mid point support zone in the current handle. EUR/CAD’s rally remains stalled around 1.3760 (major high/low support/resistance through early 2015) but the short-term trend remains constructive and well-supported by positive trend momentum indicators, as noted by analysts at TD Securities.
"The rejection of 1.3760 looks pretty emphatic on the intraday chart though and reversal potential is reflected in the daily patterns (possibly) as well. A weaker close (which would likely mean a break under short-term trend support at 1.3550) would put the cross on the defensive a little more".
Longer term, the analysts explained that pattern for the cross is constructive so a correction lower near-term may be nothing more than a short-term correction. "We think there will be good support for the EUR on weakness back to the 1.3400/50 area from here."
EUR/CAD has been testing the downside on a drift and is tracking the mid point support zone in the current handle. EUR/CAD’s rally remains stalled around 1.3760 (major high/low support/resistance through early 2015) but the short-term trend remains constructive and well-supported by positive trend momentum indicators, as noted by analysts at TD Securities.
"The rejection of 1.3760 looks pretty emphatic on the intraday chart though and reversal potential is reflected in the daily patterns (possibly) as well. A weaker close (which would likely mean a break under short-term trend support at 1.3550) would put the cross on the defensive a little more".
Longer term, the analysts explained that pattern for the cross is constructive so a correction lower near-term may be nothing more than a short-term correction. "We think there will be good support for the EUR on weakness back to the 1.3400/50 area from here."