The Euro is trading at 1.54 against the Canadian Dollar today, up 0.59% with a YTD return of 0.79%. The pair’s open rate was 1.5372, similar to the previous close at 1.5371. EUR/CAD will have a day range of 1.5370 and 1.5480, the 52-week range is anticipated to move between 1.42 and 1.59.
Over the last week, EUR/CAD has gained momentum, jumping up from the 1.52 support level to the higher end of the 1.54 level. EUR has managed to bounce back by week’s end and bearish traders will be on standby to see if the pair will return to the 1.57 level that was seen at the beginning of the month.
According to FX Street, “the market has corrected a daily bearish trend and would be now expected to collect offers at a discount for the bears which will open the case for a downside continuation.”
The next swing is forecasted to be in favor of CAD as the pair could drop to the 1.53 level at the beginning of February; this could be a successful trading opportunity for bears due to the current resistance.
EUR/CAD is expected to test the 10-day moving average and find resistance, declining in a bearish trend, “the market is also trading below a bearish alignment of the 10 and 20-month moving averages.”
The chances of EUR/CAD returning to the 1.59 level that was reached last August is slim at this point but, as COVID-19 case numbers fall and vaccines are made available to more of the population, the market anticipates a surge due to the recovery of both the European and Canadian economies. Until then, bearish trends are anticipated to continue in the long-term.
By Surina Nath