9 Dec 2013
EUR/CAD denied at major technical resistance
FXstreet.com (London) - EUR/CAD was nearing major trend channel resistance around 1.4665 earlier when it reached a high of 1.4645.
Strategists at TD Securities noted that the rally in the cross since November 21 has been all one-way. “Only one, minor, net daily loss since and the rally is looking somewhat over-extended on a range of charts but it is not obvious at this point that the upper 1.46 area can contain the rally”. Currently the pair has failed and is testing the downside again through the handle. However, they explained that trend momentum remains favourable across a range of timeframes and even with the cross looking very overbought, “We think there is a chance of EUR/CAD testing the 1.48 area in the next few weeks. Better selling opportunities await”.
EUR/CAD Levels
The 20 DMA is 1.4275, the 50 DMA is 1.4180 and the 200 DMA is 1.3675. RSI (14) reads 52.32. Supports are ascending from 1.4370, 1.4420, 1.444, 1.4490 and 1.4590. Spot is 1.4600 while resistances are 1.4610, 1.4665, 1.4740 and 1.4775.
Strategists at TD Securities noted that the rally in the cross since November 21 has been all one-way. “Only one, minor, net daily loss since and the rally is looking somewhat over-extended on a range of charts but it is not obvious at this point that the upper 1.46 area can contain the rally”. Currently the pair has failed and is testing the downside again through the handle. However, they explained that trend momentum remains favourable across a range of timeframes and even with the cross looking very overbought, “We think there is a chance of EUR/CAD testing the 1.48 area in the next few weeks. Better selling opportunities await”.
EUR/CAD Levels
The 20 DMA is 1.4275, the 50 DMA is 1.4180 and the 200 DMA is 1.3675. RSI (14) reads 52.32. Supports are ascending from 1.4370, 1.4420, 1.444, 1.4490 and 1.4590. Spot is 1.4600 while resistances are 1.4610, 1.4665, 1.4740 and 1.4775.