EUR/CAD highest levels since 2011

FXstreet.com (London) - Bullish trends are the theme of the day with the EUR up on broad USD weakness and the EUR/CAD enjoying the high life as well, up .56% with a low of 1.4067 and a high of 1.4194.

Research teams explained that EUR/CAD has been through resistance at 1.4125 and on to the highest level since November 2011. “Long-term resistance stands above the market at 1.4182 (38.2% retracement resistance from the 1.75/1.21 decline through 2008/2012)”. Fundamentally on the day, the Canadian economy showed that retail sales disappointed in Aug at 0.2% vs 0.3% consensus at the same time that the US payrolls number boosted the Euro coming in at 148k vs 180k forecasted.

EUR/CAD Levels

“The 2010/2011 highs at 1.4365/70 also figure as significant resistance topside”, said the teams at TD Securities. “The trend is your friend though and the underlying trend is strongly bullish across a range of timeframes. Near-term, look for support around 1.41 now”. The 20 DMA is 1.4020, the 50 DMA is 1.3925 and the 200 DMA is 1.3550. RSI (14) reads 76.47. Supports are ascending from 1.4000, 1.4040, 1.4085 and 1.4125. Spot is currently 1.4178 while resistances are next in at 1.4195 and through the handle for first resistance to combat on the bid at 1.4245.

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