© Dukascopy Bank SA
A little more than 100 bars ago EUR/CAD decoupled from the 200-hour SMA it was trading near for half a month and entered an upward channel within which it is still fluctuating and at the same time consistently respecting the trend-lines.
According to the technical studies on 4H and daily charts, the Euro should continue appreciating relative to the Canadian Dollar and therefore should stay in this bullish pattern. In order to do so, firstly, the pair has to rebound from the lower boundary of the corridor at 1.3814, then it is likely to rally as high as 1.3969, where the surge will meet the upper edge of the formation.
© Dukascopy Bank SA