- EUR/CAD has decisively broken a multi-month price pattern.
- If it can continue to rise, it will probably confirm the start of a strong upward movement.
EUR/CAD rises and decisively punctures above the sloping top of the price pattern in which it had been trading since early August. This is a bullish signal and if the price continues to rise, it could make a significant advance.
EUR/CAD Daily Chart
A break above 151.72 (November 1 high) could confirm a continuation to the upside, likely towards an initial target at 152.28, the August 5 high, followed by 1.5312, the 61.8% Fibonacci price projection. of the height of the pattern at its widest point, from the breakout point to the upside.
The Moving Average Convergence Divergence (MACD) momentum indicator has risen above the zero line and is currently supporting the bullish outlook.
A bearish close on Friday, however, would also form a two-bar reversal pattern, which occurs after a rally when a long green day up is followed by a long red day down of similar length. This is a short-term bearish reversal pattern and could signal a deeper correction that temporarily clouds the outlook.
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.
