EURCAD Rises to 9-month Peak above 1.5000

Technical analysis of Forex market

EURCAD stretched its two-week rally towards a nine-month high of 1.5032 earlier today. The market trend is likely to hold on the upside as long as the price holds far above its moving averages and the Ichimoku cloud.

The MACD seems to be gaining momentum above its red signal line, the RSI is still hovering around its 70 overbought mark and the red Tenkan-sen is moving above the blue Kijun-sen, all signaling a more bullish trading in the short term.

Should the positive action extend above today’s high, resistance to further upside movements could be initially detected within the 1.5080 – 1.5113 area, which includes the 61.8% Fibonacci retracement level of the downward wave from 1.5640 to 1.4263. Clearing that zone, the next stop could be around 1.5180 – 1.5210, a frequently tested area in the previous year.

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Alternatively, the pair needs to slip below the 1.5000 key level to meet a barrier near the 50.0% Fibonacci of 1.4950. The 1.4860 mark could act as support too before a more important battle starts near the 38.2% Fibonacci of 1.4790.

In the medium-term picture, the sentiment turned bullish after the price surpassed the 1.5000 number. The positive slope in moving averages also adds optimism for a brighter outlook.