The EURCAD rally, driven by a strong euro and a weak Canadian dollar, has created an impressive chart setup. A cup formation has developed just below the 1.5960 resistance level. Whether this pattern will be completed with a handle remains unclear at this stage.
If a handle forms, the 78.6% retracement level could serve as a reasonable downside target. In the short term, the 50-hour EMA is supporting the trend and can be watched as key support.
If EURCAD breaks above 1.5960 and confirms the cup formation, the medium-term target for the pattern could reach as high as 1.6440.
If a handle forms, the 78.6% retracement level could serve as a reasonable downside target. In the short term, the 50-hour EMA is supporting the trend and can be watched as key support.
If EURCAD breaks above 1.5960 and confirms the cup formation, the medium-term target for the pattern could reach as high as 1.6440.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.