Technical analysis of EUR/CAD

On the daily chart of EUR/CAD, the pair formed an ascending channel with the top at 1.5141. On June 6, the European currency was boosted by ECB comments. Although the central bank announced an extension of the earliest date for a rate’s increase from year-end to the middle of 2020, the currency was up. Maybe the rise was caused by the willingness of the bank to support the economy in times of global uncertainties. Nevertheless, the euro gained momentum and the pair tested the top at 1.5141 again. This level is a strong resistance because previously the pair rebounded from it several times. On Friday, investors will consider Canadian jobs data. Positive releases may limit the rise of the pair.

1 scenario: As it was mentioned above, the pair has been trading within an ascending channel, it means that borders play an important role too. We can see a test of the upper boundary of the range near 1.5180, however, it will not mean that the pair has gained momentum. EUR/CAD needs to close above 1.5141, so it will increase the chances of a further rise. The next important resistance to see lies at 1.52145.

2 scenario: Until the pair sticks above 1.5141 risks of the fall exist. The first support will be placed at the low border of the channel. A break below the border will provoke a further decline towards 1.4987.

Darya Bobrova