Technical Analysis – EURCAD looking range bound; plots some gains
EURCAD today found footing on the 1.5127 level, that being the 50.0% Fibonacci retracement of the up leg from the 34-month low of 1.4263 to the 2-year high of 1.5991. Despite the fact that positive momentum is increasing, the pair remains confined within a sideways market between 1.5052 and 1.5532, something also reflected in the simple moving averages (SMAs).
The MACD is increasing above its red signal line and has moved above zero, while the RSI is rising towards the 70 mark. Moreover, the stochastic lines are improving after the %K’s positive crossover of the %D line.
Should the price continue to extend above the upper Bollinger band, initial resistance could come from the 38.2% Fibo of 1.5332 ahead of the ceiling of the range at 1.5532. If buyers manage to also penetrate above this border, the 23.6% Fibo could deter the jump towards the 1.5709 peak.
Otherwise, if the pair retreats, the region of the SMAs starting at 1.5220 could provide support ahead of the 50.0% Fibo of 1.5127. In the event the strong foundation of the consolidation pattern at 1.5052 gives way, the nearby 1.5014 and 1.4976 obstacles could provide additional restraints to downside moves reaching the 61.8% Fibo of 1.4922.In brief, the short-term bias remains confined between 1.5052 and 1.5532, and a break above or below these barriers would reveal the next direction.
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