Canadian Dollar is extending near term rally, with help from rising oil price as WTI breaks above 81 handle. EUR/CAD is also accelerating down, and it’s now close to 61.8% projection of 1.5783 to 1.4580 from 1.5096 at 1.4353. The reaction to this projection level could set the tone in EUR/CAD for the near to medium term.
Note that firstly, EUR/CAD was previously rejected by 55 week EMA, which is seen as a medium term bearish development. Secondly, the cross has also broken a long term trend line support as seen in weekly chart, which is another bearish development. Sustained break of 1.4353 projection level could bring another round of downside acceleration through 1.4263 support, towards 100% projection at 1.3893.
