By Greg Holden – The euro has been regaining its composure against its smaller North American counterpart due to recently boosted risk appetite. The Canadian dollar, to the contrary, has been under pressure lately due to a decline in crude oil futures as well as concerns that growth in the Canadian economy may be stagnating. As a result, we can see the value of the EUR gaining against the loonie in a consolidating wedge formation.
– We can see on the daily chart below that the price has indeed been trading within a wedge formation which began in June. The price is currently finding support near 1.3400.
– The upper barrier of this consolidation point also rests at the 38.2% Fibonacci retracement line. The consolidation price target appears to be 1.3700 and there is nothing in our technical indicators which suggests this consolidation will not be met.
– We can also see an ascending pattern on both the Stochastic (slow) and MACD/OsMA, which support the continued upward movement in the direction of this consolidation level.
EUR/CAD – Daily Chart
Forex Market Analysis provided by ForexYard.
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