EUR/CAD Analysis: Get Ready, The Bulls Are Back In The Game

After moving down for almost 550 pips during the last month, EUR/CAD price created a classic chart pattern, a descending channel. During the previous week, price managed to break above the channel showing in this way an increase in current momentum.

Multi Time Frame Technical Analysis

In the daily chart, the EUR/CAD price found resistance near 100 EMA and failed to break and close below it.

In the 4-hour chart, the price created a descending channel that was stopped by the daily 100 EMA. This strong confluence zone pushed the price higher, above the upper line of the channel, thus giving a strong bullish signal.

As long as the indicators are keeping the bullish momentum, we can see the price to target 1.5736 and 1.5860 in the following days.

A price break below 1.5509, the previous structure low, could invalidate this trading setup.