EURCAD highest since November 2016
In mid-April EURCAD started from support at 1.4090 a rally that continues to this day (as we wrote in this analysis). Demand stands now a hard situation as the price reached key resistance at 1.4950. If there is now a reflection (which is very likely), it may trigger a new downward wave. Such move could reach at least the nearest support at 1.4560. In turn, breaking the resistance of 1.4950 would add wind to demand sails and could bring the price even to the 2016 maxima.
Bullish move of 900 pips without correction
Over the last 2 weeks EURCAD has made a movement of 900 pips. This was done without any downward correction. At this point, most traders are already aware of the inevitable correction. In the moment when the correction appears and it will not be deep we will have a chance to successfully break resistance at 1.4950 if pair returns to growth. However, if the downward move took its toll and the nearest support of 1.4560 would not stop declines, it is possible even to reverse the trend at the current level and a new downward impulse towards the 2017 minima can be initiated.
