Technical Analysis of EUR/CAD for April 05, 2016
The EUR/CAD pair managed to find a hard bottom near the 1.4500 level after which a sharp move up followed. The spike up resulted in the breakout of the descending channel, where price broke above the 23.6% (R1) level of the Fibonacci applied to the channel breakout point.
Following the sharp rise to the 1.5000 area, price corrected downwards, tested and rejected the upper channel trend line twice. Finally price broke above the 200 Moving Average, which could signal about the start of the corrective move higher.
While price broke above the R1 (1.4960) but hasn't tested R2 (1.5130), consider buying EUR/CAD either on a corrective wave down towards S1 (1.4850) or on the R1 breakout targeting the nearest resistance R2. The stop loss should be just below S1.
Support: 1.4850, 1.4760, 1.4670
Resistance: 1.4960, 1.5130
The material has been provided by InstaForex Company - www.instaforex.com