The common European currency has surged by 193 pips or 1.25% against the Canadian Dollar since September 3. The currency pair tested the 200– period simple moving average at 1.5636 on September 10.
The exchange rate is currently trading near the upper boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards a resistance cluster at the 1.5800 level could occur within this week’s trading sessions.
However, if the channel pattern holds, bears are likely to pressure the currency exchange rate lower this week.
