The common European currency has been depreciating against the Canadian Dollar since the middle of May when the currency pair reversed from the monthly resistance level at 1.5144.
As apparent on the chart, the exchange rate is trading above a support cluster formed by the 50.00% Fibonacci retracement level and the combination of the 100– and 200-hour SMAs at 1.5054. From a theoretical perspective, the EUR/CAD currency pair should continue moving north in the short-term.
However, it is important to note, that the currency exchange rate is guided by a medium-term descending channel. Thus, if the given channel pattern holds, the pair will continue its southern movement in the nearest future.
