The single European currency has appreciated about 1.73% in value against the Canadian Dollar since September 11. The surge was stopped by a resistance level formed by the 200-hour simple moving average at 1.4699 during Friday’s trading session.
The EUR/CAD exchange rate is currently testing a support cluster set by the combination of the 50– and 100– period SMAs at 1.4610.
If the support cluster holds, a breakout through the upper boundary of a descending channel pattern at 1.4699 could occur within this week’s sessions.
However, if the currency exchange rate breaks the 50– and 100– period SMAs, a decline towards a support cluster formed by the monthly S1 and the weekly S2 at 1.4481 could be expected during the following trading sessions.
