By: Mike Kulej
The most recent week has been very slow for the EUR/CAD. For the better part of July, this pair posted strong moves, but right now, it is consolidating, best visible on an intermediate term chart.
After a rally from 1.2950 to 1.3690, the EUR/CAD pulled back 1.3265, which appears to be a typical correction within the prevailing uptrend. The most likely scenario, on technical basis, would be to see a resumption of the rally. However, the movement is very slow, sideways. This could be ending soon, due to emergence of an ascending triangle. A breakout above the base, at about 1.3510, is very likely to push this pair to the last resistance, just under 1.3700, and maybe even higher over a longer term.
Should the EUR/CAD turn down, there are number of lesser supports on the way. At least three minor lows, the 100 SMA and a more important support at 1.3265. All this will make a bearish move more difficult. On balance, from the technical perspective, the picture is bullish, and chances are high for a more accelerated action very soon. Perhaps even before the weekend.