EUR/CAD has been in a rally after bottoming around the 1.32925 crucial support. Improving sentiment across the euro has helped the common currency to touch the 50-EMA against the Canadian dollar in early European session.
The move also resulted in a break of the downtrend line as buyers took the upper hand above the 1.34300 handle. If positive momentum persists, overstepping the 50-EMA can bring the previous top at 1.35131 into buyers’ sight. Breaking this level will send the price towards the next resistance located at 1.35943.
On the other hand, if 50-EMA can stall the rally, EUR/CAD can back down to retest the broken trendline before tackling the dynamic resistance again.
Short-term momentum oscillators exhibit a challenge between buyers and sellers to take the control, with prevailing bullish bias in the market. RSI is trying to pull out of the neutral zone to the upside. At the same time, momentum is crawling beneath the 100-threshold, waiting for further push from bulls to get into the buying region. Likewise, MACD bars are shrinking in the selling area, suggesting the bearish momentum is waning at the time.
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