EUR/CAD 4H Chart: Channel Up

After touching the 200-period SMA early this year, EUR/CAD managed to regain its bullish momentum. Eventually, this has led to formation of the bullish channel on the four-hour chart.

Accordingly, in the short run it is expected that the single European currency will first descend down to the lower up-trend line at 1.5069 (also the weekly pivot point) as a part of the bearish correction the pair is currently undergoing and then it will be able to set course towards 1.5556, despite the lack of ‘buy' signals on three most relevant time-frames and also despite indecision in the market, as there are equal amounts of long and short positions presently open.