Societe Generale: trading EUR/CAD
Analysts at Societe Generale point out that EUR/CAD approached the lower limit of a multi-month up sloping channel at 1.4670 which is also the confluence of the 23.6% retracement from 2012 lows and the 76.4% retracement from January lows. It has also formed a weekly bullish engulfing pattern. Weekly RSI is testing a graphical support pointing towards limited downside.
Chart. Weekly EUR/CAD
On the daily chart 1.4670 happens to be the trend line support from July 2013 lows and an initial projection for the c wave (with wave c equal to wave a). With daily indicator bouncing from a support, 1.4670 should cushion further downside. According to Societe Generale, the pair is more likely to stage a pullback towards the upper limit of the daily channel at 1.50 and probably even towards 1.5170.
Chart. Daily EUR/CAD