EUR/CAD may rise 39 - 58 pips

1.4988 is our pivot point.

Our preference

The upside prevails as long as 1.4988 is support.

Alternative scenario

The downside breakout of 1.4988 would call for 1.4955 and 1.4936.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 1.5000 and 1.4993). Finally, the EUR/CAD has crossed above its upper Bollinger band (1.5011).

Supports and resistances

1.5111 **

1.5092 *

1.5072 **

1.5053

1.5014 last

1.5000

1.4988 **

1.4955 *

1.4936 **

Number of asterisks represents the strength of support and resistance levels.