chart of the day eurcad further potential push up within range configuration 1855042017

Short-term technical outlook on EUR/CAD

(Click to enlarge charts)

Key technical elements

• The recent decline seen in the EUR/CAD cross pair from its 29 May 2017 high has managed to stall right at the 1.4785 medium-term pull-back support from the January 2016 high (see weekly chart).
• Since its 1.4720 minor swing low of 19 June 2017, the cross pair has started to evolve within an “Expanding Wedge” range configuration with the lower boundary of the range acting as a  support at 1.4785 that confluences with aforementioned medium-term pull-back support (see hourly chart).
• The upper boundary/resistance of the minor “Expanding Wedge” stands at 1.5020 which is also defined by the former minor swing low areas of 31 May & 09 June 2017 and the 1.00 Fibonacci projection of the recent rally from 22 June 2017 minor swing low to 28 June 2017 high projected from 28 June 2017 low.
• The hourly Stochastic oscillator is now coming close to an extreme overbought level which highlights the risk of a minor pull-back at this juncture towards the 1.4840 intermediate support.

Key levels (1 to 3 days)

Intermediate support: 1.4840

Pivot (key support): 1.4785

Resistances: 1.4970 & 1.5020

Next support: 1.4730

Conclusion

Short-term uptrend remains intact for EUR/CAD within the “Expanding Wedge” configuration but it faces the risk of a minor pull-back first towards its immediate support at 1.4840 with a maximum limit set at the 1.4785 short-term pivotal support. Thereafter, it is likely to resume its minor degree bullish impulsive upleg to retest 1.4970 (28 June 2017 minor swing high area) before targeting 1.5020 next.

However, failure to hold above 1.4785 is likely to negate the preferred short-term bullish tone for a deeper slide to retest the 1.4730 minor rounding bottom support of 19/22 June 2017.

Charts are from eSignal

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