EUR/CAD: technical outlook
By Dima Chernovolov
• EUR/CAD rises after reversing from support zone
• Likely to rise further to 1.4400 and 1.4600
EUR/CAD has been rising strongly from the start of this trading week – when the pair reversed up from the support zone lying between the support level 1.3800, the lower daily Bollinger Band and the 50% Fibonacci Correction of the previous sharp primary impulse ① from the middle of 2012 (as you can see from the weekly EUR/CAD chart below). This support zone also earlier reversed the pair in November.
The upward reversal from this support zone completed the primary ABC correction ②. EUR/CAD is expected to rise further in the next primary upward impulse ③ toward the next resistance levels - 1.4400 (which created the top of the earlier A-wave). If the price breaks above 1.4400, it can rise further to 1.4600 (which reversed previous (B)-wave).