EURCAD Stays in a Sideways Market Beyond the 1.5550 Level As Bulls and Bears Struggle for Direction

EURCAD Price Analysis – October 28

The Canadian dollar continues to outperform amongst G10 currencies with EURCAD staying in a sideways market beyond the 1.5550 level. EURCAD is in buyers’ territory and well on its way for prospects of a higher high. However, the Bank of Canada (BoC) policy update should be modestly CAD supportive.

Key Levels
Resistance Levels: 1.5739, 1.5675, 1.5600
Support levels: 1.5430, 1.5376, 1.5200
EURCAD Long term Trend: Ranging
EURCAD was up 14 pips, or 0.05% against the Canadian dollar on Wednesday, as the pair broke the key 1.5550 level during Wednesday’s trading session. All things being equal, the exchange rate is likely to continue to rise during the next trading session.

The potential target for the bulls will be horizontal resistance at 1.5675. However, near-term resistance at 1.5600 could provide resistance to the exchange rate before it soars higher.
EURCAD Short term Trend: Ranging
EURCAD intraday bias remains neutral as consolidation continues from the 1.5389 temporary low. On the other hand, a breach lower of 1.5376 would target the 1.5200 low level. The breach will resume the stronger fall from the 1.5970 level.

However, a break higher of the 1.5600 resistance level will extend the consolidation pattern from 1.5389 with a new phase of growth. Instead, the intraday bias will be directed up towards the 1.5675 level. Besides, the likelihood of a short-term trading stop being triggered above the level of 1.5675 contributes to its increase.

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