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.