EURCAD below key resistance
Since beginning of December EURCAD is in consolidation between 1.3800-1.4290. Test of lower band of it and then breaking up from triangle gave bulls power. I two weeks important resistances at 1.3960 and 1.4110 were broken and currently price reached key resistance which is upper band of mentioned consolidation.
Possible scenarios
Breaking 1.4290 resistance with one strike is not very probable. It will be influenced by previous dynamic bullish movement which wan not interrupted by not a single correction. This is why we can assume that there will be correctional rebound on 1.4290. This movement will end on 1.4170 or 1.4110. Ig the demand will be strong after end of correction we can assume that attack on 1.4290 may be successful.
Second scenario assumes that rebound from 1.4290 resistance will lead EURCAD back to lows at 1.3800 and this movement will be continued in middle term.
