- EUR/CAD is expected to rise if a bullish continuation pattern completes.
- The price pattern is reinforced by the ADX indicator rising strongly above 20.
- EUR/CAD could reach 1.5000 and beyond if the bullish momentum continues.
EUR/CAD is rising sharply as divergent interest rate expectations favor the Euro (EUR) over the Canadian Dollar (CAD).
The pair is trading around 1.4950 at the time of writing and is forming a price continuation pattern (shaded blue rectangle) which, if completed, could forecast likely higher prices to come.
EUR/CAD Daily Chart
Assuming Wednesday’s close is above 1.4930 and the day ends as a bullish green candle, the pattern will be confirmed.
The Average Directional Index (ADX) is used to assess the strength of the trend and is rising above 20, further confirming the likelihood of the uptrend continuing.
If the pattern completes, as seems highly likely, the pair will likely rally to around 1.5000, where it will find resistance at the dark grey trendline. A break above the day’s highs would serve as confirmation.
It is also possible that it will continue even higher towards the resistance line at 1.5040.
However, a drop below 1.4839 would invalidate the pattern.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
