The Eurozone single currency movement against the Canadian Dollar has been constrained by an eight-week descending pattern. The pair made a U-turn south after hitting the upper boundary of a channel down on March 20.
During the past one week, the exchange rate has developed a new junior ascending channel. Furthermore, the pair has breached both the 55– and 100– hour simple moving averages near 1.51.
Two scenarios are likely to take place within the following trading session. First, the currency exchange rate could decline and find support at the 55– hour SMA.
Second, the EUR/CAD currency pair might reverse from the aforementioned support and gather enough momentum to break out through the upper boundary of the dominant channel.
