Cross currency consolidation has led the EUR/CAD currency pair to run into a major resistance level – just below the psychological 1.3250 figure.  This level is suppressing any momentous gains in the cross pair, even as the Euro has made some intraday headway against the US dollar.

Given the fact that technical indicators have entered into oversold territory, we can anticipate a bit of a correction in the pair, with near term support levels at 1.3145 and 1.3117 likely to stabilize the decline.  Supportive of this sentiment is the declining technical readings in both Stochastic and MACD.  Both oscillators are showing sentiment readings with lower highs even as the price action continues to rise – a highly bearish signal.

Should the price action break through the 1.3250 in the short term, this would shift the sentiment to further momentum higher, with traders seeking longer term targets at 1.3336.

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