The EURCAD has gotten a big boost over the last few days on CAD weakness and today we are seeing some EUR strength. The combination is lethal for a run up in the EURCAD.
EURCAD is above trend line on the daily and looks toward the important 100 day MA
Looking at the daily chart (see above), the price today surged above the trend line resistance at the 1.4261 level. Admittedly, this trend line was broken in mid-October but after 5 days trading above the line, the price rotated back lower and has used the trend line as resistance. The move back above is bullish. The next target off the pair – if the bullish bias can continue – would be the 100 day MA (blue line in the chart above). In Mid-October, the price tested but could close above this line (currently at the 1.4388 level). The price has not closed above the 100 day MA since May 7, 2014.
We know the broken trend line will be eyed as support at 1.4261. Is there closer support?
Close support for the EURCAD is being tested at the 1.4300 level. Below that the 1.42725 needs to hold to keep the buyers happy.
Looking at the hourly chart, the price today extended above a trend line and the 50% retracement of the move down from the October 15 high to the low reached just yesterday. That level comes in at 1.42725. Even close support comes in at the 1.4300-02 area. This level was a ceiling (now a floor) in trading today. Stay above and the buyers remain in full control. Move below and retest of the 1.4275 level might be in order (longs do not want to see a move back below the 1.4261 now).
The price is currently testing the 1.4300 level. Key test for intraday buyers. .