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.