EUR/CAD is testing the underside of an ascending channel!
Can the pair lengthen its uptrend this week?
The 4-hour chart is saying “Hmm. That tracks.”
EUR/CAD’s 2022 downtrend has discovered a backside at 1.2900 in late August and the pair has been making increased highs and better lows since then.
It additionally helped EUR/CAD bulls that the 100 SMA had crossed above the 200 SMA simply as EUR/CAD had damaged above a 300ish-pip consolidation from July to September.
Can EUR/CAD keep its upside momentum although?
The pair is hanging out on the 1.3450 zone that’s virtually on the backside of a months-long ascending channel.
1.3450 can also be close to the 4-hour chart’s 100 SMA that has maintained its distance (learn: its bullishness) towards the longer-term 200 SMA.
If EUR/CAD bounces from its present ranges, then the pair could discover sufficient momentum to retest the 1.3550 month-to-month highs.
Be careful for a little bit of promoting round 1.3550 because it traces up with a potential ascending triangle resistance on the chart.
A transparent break past 1.3550 may result in EUR/CAD revisiting its 1.3700 earlier highs.
However that’s if EUR can discover sufficient consumers this week.
Understand that markets expect the Financial institution of Canada (BOC) to lift its rates of interest by 50 foundation factors on Wednesday whereas the European Central Financial institution (ECB) is anticipated to comply with with a 75 bps price hike on Thursday.
If markets sense that the BOC could quickly decelerate its price hikes, or if ECB President Lagarde highlights the central financial institution’s plans to tighten its insurance policies additional, then EUR/CAD will lengthen its uptrend all the way in which to new month-to-month highs.
But when merchants give attention to sketchy mid-term progress prospects within the Eurozone, or if increased oil costs result in a stronger CAD, then EUR/CAD may even see sufficient bearish strain to interrupt its uptrend.
What do you assume? Will EUR/CAD see new month-to-month highs earlier than the week ends?
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