EUR/CAD slowly approaching 20-day SMA

© Dukascopy Bank SA

© Dukascopy Bank SA

Resistances: 1.2431; 1.2500; 1.2603
Supports: 1.2357; 1.2287; 1.2105

Outlook
EUR/CAD experienced a huge bullish correction on August 3rd, followed by another smaller rally yesterdayAs for now, the currency couple experiences a bearish reaction, which already managed to close the recently established upside gap, and now the price is slowly approaching a 20-day SMA at 1.2357, which might serve as a support level for the current dip. In case the price manages to break through, then EUR/CAD is very likely to reach the lower Bollinger band at 1.2287, which will probably bring some bullish impetus. At the same time, RSI indicator remains neutral, therefore no significant breakthroughs are expected.

Traders' sentiment
Traders at SWFX market are optimistic about potential strength of the single European currency, as 73% of traders hold long positions on EUR/CAD currency pair. Moreover, 71% of traders ordered to buy EUR/CAD, expecting that the Euro will gain value against the Canadian Dollar.