23 Mar 2015
EUR/CAD: 1.39 is a key target level - TDS
FXStreet (Guatemala) - Analysts at TD Securities offered the EUR/CAD's technical conditions noting that the EUR/CAD managed to rebound modestly over the past week, with the recovery established around key long-term support at 1.3450 (61.8% retracement support of the 2012/2014 rally).
Key Quotes:
"We had noted the potential for a base to form here but rather thought the strength of the underlying bear trend would prevail against a sustained rebound. We are about to put that theory to the test as the minor consolidation nears a key zone of resistance between the high 1.37s/high 1.38s—effectively the base of the range that prevailed though late 2014/early 2015."
"Trend momentum is negative still on the daily/weekly charts but the sell-off has clearly lost February’s intensity."
"The fuzzy resistance zone makes a hard call difficult to make at this point but would think a push above 1.39 would augur for more strength and give the impression of a stronger, long-term floor in place."
Key Quotes:
"We had noted the potential for a base to form here but rather thought the strength of the underlying bear trend would prevail against a sustained rebound. We are about to put that theory to the test as the minor consolidation nears a key zone of resistance between the high 1.37s/high 1.38s—effectively the base of the range that prevailed though late 2014/early 2015."
"Trend momentum is negative still on the daily/weekly charts but the sell-off has clearly lost February’s intensity."
"The fuzzy resistance zone makes a hard call difficult to make at this point but would think a push above 1.39 would augur for more strength and give the impression of a stronger, long-term floor in place."