EURCAD – Finding buyers at key average
21st July 2017
This week has seen some significant buying of EURCAD at the 21 week moving average line. It was a positive break of that point in both spot and RSI that generated an outright bullish bias. That Trend Table bias has remained intact since.
Gains of almost 9 big figures were posted up to May’s EURCAD high (near to November’s peak). Since that point the market has declined steadily – 5 of the last 6 weeks prior to this week have posted net losses.
This took the cross back to the 21 week average last week but not through it. This was significant because EURCAD RSI did post a negative crossover. Early trading this week probed below the spot average but yesterday’s powerful renewal of demand has confirmed that the bullish tone remains the key background element in analysis.
So we’re currently happy to trade EURCAD longs on a medium term view but will feel happier when/if the RSI indicator returns to positive territory.
Initial upside targets are 1.4831 and 1.4980.
