By: Colin Jessup
The EUR/CAD reversed its descent today, climbing 116 pips in today's trading after rebounding from a Higher low the day before at 1.2929. This is the third touch, and confirming touch of an ascending trend-line that began on January 16 of this year...and in fact is the continuation of a trend of Higher Monthly Lows that began in June 2010. The pair is currently trading just a few pips above the Weekly Pivot at 1.3069, and could pull back some before continuing higher, as the chart is indicating is probable. For the Intra-day time frames we have support at 1.3053 as well as the Daily Pivot at 1.3037. Beyond that the Daily S1 sits at 1.2995, so call is 1.3000 to be safe as this is a key zone for both the EUR/CAD and EUR/USD both. Above the daily high at 1.3083, we have little in the form of Resistance with a technical vacuum taking us all the way to the Daily R1 at 1.3110, as well as the DM5 at 1.3132. If the pair closes up around 1.3135 before the weekend, we can expect some retracement on Monday, but it is likely that this could be the start of a Bullish trend reversal and prices above 1.3240 could be achieved in the next week.
Happy Trading
