EURCAD Forms Cup Formation

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The EURCAD rally, driven by a strong euro and a weak Canadian dollar, has created an impressive chart setup. A cup formation has developed just below the 1.5960 resistance level. Whether this pattern will be completed with a handle remains unclear at this stage.

If a handle forms, the 78.6% retracement level could serve as a reasonable downside target. In the short term, the 50-hour EMA is supporting the trend and can be watched as key support.

If EURCAD breaks above 1.5960 and confirms the cup formation, the medium-term target for the pattern could reach as high as 1.6440.

Penafian

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