Want to be long EURCAD?

Testing major support at 1.3450, the EURCAD currency pair looks ripe for a move higher in New York afternoon trade.  Although there are resistance barriers above, technical indicators are siding with some short term upside momentum.

With a potential tweezer formation (what’s a tweezer?) in the works, the technical picture looks promising.  Major oscillators are supportive of a move higher – with Stochastic showing completely oversold conditions.  MACD is also displaying a steep bullish convergence.

As a result, we anticipate a move higher to initial resistance at 1.3481 (25 SMA) before a break to 1.3500 (50 SMA) resistance.  Medium term targets are set for 1.3525 (38.2% fib from 1.3653-1.3453 bear wave).  Any penetration below current support at 1.3450 would negate the upside potential and set targets lower to 1.3400 support.

 

 

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