EUR/CAD Price Forecast: Hits one-week top, bulls flirt with 200-EMA near 1.4870 area
Fxstreet
Nov 18, 2024 9:01 AM
- EUR/CAD gains positive traction for the third straight day and climbs to a one-week top.
- The mixed technical setup warrants some caution before positioning for further move-up.
- A sustained strength beyond 1.4915-1.4920 might shift the bias back in favor of bulls.
The EUR/CAD cross attracts some follow-through buying at the start of a new week and looks to build on its recovery from the vicinity of the 1.4700 mark, or the lowest level since July 10 touched last week. Spot prices climb to a one-week top during the first half of the European session and currently trade around the 1.4870 region, up 0.25% for the day.
A modest downtick in the US Dollar (USD) provides a modest lift to the shared currency. Furthermore, bets for a larger interest rate cut by the Bank of Canada (BoC) continue to undermine the Canadian Dollar (CAD) and act as a tailwind for the EUR/CAD cross. That said, rebounding Crude Oil prices could limit deeper losses for the commodity-linked Loonie and cap gains for the currency pair.
From a technical perspective, the EUR/CAD cross is currently placed near the 200-day Exponential Moving Average (EMA). This is closely followed by the 38.2% Fibonacci retracement level of the downfall witnessed over the past two weeks, around the 1.4885 region, and the 1.4900 mark. A sustained strength beyond the said barriers might shift the bias in favor of bulls and set the stage for further gains.
That said, oscillators on the daily chart – though have been recovering from lower levels – are holding in negative territory. This, in turn, makes it prudent to wait for strong follow-through buying beyond the 1.4915-1.4920 area before confirming that the EUR/CAD cross has formed a near-term bottom and positioning for a move beyond the 1.4950 area (50% Fibo. level), towards reclaiming the 1.5000 psychological mark.
On the flip side, the 23.6% Fibo. level, around the 1.4820 region, now seems to protect the immediate downside ahead of the 1.4790-1.4785 zone. The subsequent downfall could expose the multi-month low, around the 1.4710 area. The EUR/CAD cross could eventually weaken further below the 1.4700 round figure and accelerate the downfall towards testing the next relevant support near the 1.4675 region.
EUR/CAD daily chart
Related Articles
Bitcoin Hits S2F Threshold: Should You Hold Tight Or Take Profits?
Bitcoin has so far continued to level up in terms of price performance, hitting new highs consistently for the past week. As a result of this, investors seem to be curious about whether it’s time to secure profits or stay bullish for the next leg of the cycle.
HSBC cuts Palo Alto rating on valuation concerns; stock down
Investing.com -- HSBC (LON:HSBA) downgraded Palo Alto Networks Inc (NASDAQ:PANW) shares to Reduce from Hold amid valuation concerns. The investment bank also reduced the price target on the stock to $291 from $304.
3 Top Tech Stocks That Could Make You a Millionaire
I believe these three high-growth tech stocks check all the right boxes: SoundHound AI (NASDAQ: SOUN), SentinelOne (NYSE: S), and Cloudflare (NYSE: NET). Let's see why this trio might be well-poised to deliver multibagger gains over the next few years.
