The EUR/CAD pair rose during the session on Thursday, breaking the top of the hammer that had formed on both Wednesday and Tuesday. That being the case, and the fact that it sits just above the 1.50 level tells me that this market is probably ready to continue going higher. After all, it doesn’t get much bigger as far as a large, round, psychologically significant number than the number 1.50!
On top of that, the 1.50 level is the 50% Fibonacci retracement level. With that in mind, I do recognize that the 1.52 level is resistive, but at this point in time, I believe that this market will eventually break above there and probably head back towards the 1.56 level where it topped out. That being the case, I also cannot help but recognize that the Euro has been strong in general, although the Canadian dollar has picked up a little strength lately. Nonetheless, the technical indicators do suggest that we are going higher. On top of that, the 100 day exponential moving average is just below the recent price action, and as a result I simply can see no reason whatsoever to short this pair.
Continued uptrend.
The continued uptrend should expand, and I believe that pullbacks will continue to be nice buying opportunities in this marketplace as it should go to at least the high. Breaking above that level though is probably going to be what truly happens. It won’t necessarily be the easiest thing right now, so expect a lot of volatility between here and there. I believe that the 1.50 level should continue to be the “floor” in this market, and with that I think it’s only a matter of time before the market really start to pick up momentum.
If we did somehow managed to break down below the 1.50 level, I think this market could absolutely collapse. That would have to be something that coincides with the EUR/USD pair though, and that one certainly doesn’t look like it’s ready to fall apart. Because of that, I’m very bullish of this market right now.
