Technical Analysis – EURCAD bullish; Attempts a close above the 200-day moving average

Posted on March 20, 2017 at 11:13 am GMT by the XM Investment Research Desk
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EURCAD has edged higher since the day’s open while it has crossed above the 200-day moving average (MA).

The short-term bias as depicted by the RSI is bullish as the indicator is well above the 50 neutral mark at 66. This is reinforced by the stochastics as the %K line is bullish and it has crossed above the slow %D line.

Should the price manage to close above the 200-day MA, then the March 13 four-month high of 1.4416 would come into focus as an important resistance level. If this is breached as well, the 1.45 handle might serve as a psychological barrier to further upside moves.

On the downside, the 23.6% Fibonacci retracement (February 15 – March 13 upleg) at 1.4266 could provide support. If it fails to hold, the 38.2% Fibonacci at 1.4173 is likely to offer additional support.

Regarding the medium-term picture, the pair recorded a bearish cross in December when the 50-day MA moved below the 200-day one. Despite this, the uptrend since mid-February has challenged this signal for a neutral to bullish outlook further ahead.

Overall, the short-term bias is bullish and the medium-term outlook is neutral to bullish.