EUR/CAD May Possibly Rise to 1.70+

The end of the month is near and it is a good idea to watch the EUR/CAD pair, because based on how the pair is developing on the smaller time frames on the monthly one could form a pin bar.

On the W1, D1 and even H4 time frame the pair has signals for a move to the upside.

On the D1 time frame the next target of the rally should be around 1.5250 - 1.5270. If the pair breaks out above that resistance level I think we could expect for the rally to continue in the long term to the upper part of the trend channel around 1.70+.

In the alternative scenario there will be a drop to the support trend line of the channel around 1.4500, but this scenario appears less probable.

A Double Bottom and a Strong Move to the Upside for USD/CAD

After the sharp move to the downside today caused by the optimistic employment change and unemployment rate data, the USD/CAD pair predictably began moving to the upside. More importantly, the pair also formed a double bottom visible on the four-hour time frame, which is also visible on the daily time frame, as well as a great hammer candlestick on the aforementioned four-hour time frame.

At the moment the pair is rising towards the resistance at 1.2800, but I think it will possibly reach 1.2850 or even climb higher than that.

It is still difficult to predict whether this is the end of the bearish trend or this is the beginning of a corrective flag, but next week it will likely become obvious which one of these scenarios is more valid.

The Bank of Canada Kept the Interest Rate as It Is

The Bank of Canada announced today that it has decided not to change the interest rate and keep it at 0.50 and investors interpreted that as a good sign, which made all Canadian Dollar pairs start moving in favour of the Canadian currency.

When the news was announced USD/CAD fell with over 70 pips, which confirmed the trend reversal I have been expecting since yesterday.

EUR/CAD also fell with 90 pips and continues falling. I think the pair will keep moving to the downside, towards 1.4100 - 1.4050, which is a strong support level visible on the weekly time frame.

It is too early to say whether the pair will break below that level, because the monthly time frame is indicating a move to the upside, rather than to the downside. We will have to watch EUR/CAD carefully when it reaches that level.