After breaking above the 1.5000 psychological level, EUR/CAD is now eyeing a MAJOR area of interest.
Will we see the pair extend its gains? Or will bears step in at the 1.5150 resistance zone?
We’re taking a closer look at the 4-hour time frame!
EUR/CAD 4-hour Forex Chart by TradingView
EUR/CAD has been steadily climbing higher after breaking above the R1 level at 1.5006! See, the euro seems to be finding support from the ECB highlighting better-than-expected Q3 growth figures and expressing optimism about future growth prospects, despite removing some hawkish language from its latest statements. This has helped offset concerns about weaker mid-tier data and political uncertainties in Germany and France.
Meanwhile, the Canadian dollar has been weighed down by softer-than-expected CPI figures and lower crude oil prices. Risk aversion in the broader markets has also pressured the commodity-linked currency.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The 4-hour chart shows sustained momentum after the breakout above 1.5006, with the pair now setting its sights on the 1.5150 resistance area that has capped gains since September. A potential bullish SMA crossover is forming as the shorter-term moving average curls upward, suggesting strengthening bullish control.
Recent candlesticks show strong buying pressure, though some hesitation may be expected as price approaches the major resistance zone. The previous resistance at 1.5006 could now serve as support for any pullbacks.
If EUR/CAD maintains its bullish momentum and breaks above the 1.5150 resistance zone, we could see an extension of gains toward 1.5200 or higher levels.
However, if bears step in to defend the resistance, the pair could pull back to retest the broken resistance-turned-support at 1.5006, or potentially deeper toward the 1.4913 pivot point where the moving averages are converging.
Where do you think EUR/CAD will go in the next trading sessions?
As always, watch out for other top-tier catalysts that could impact overall market sentiment, and make sure you practice proper position sizing when taking any trades!