Partner Center Find a Broker

Anyone up for a classic break-and-retest play?

This might be a good chance to catch the new trend on EUR/CAD.

Here are the correction levels I’m watching on the pair’s 4-hour time frame.

EUR/CAD: 4-hour

EUR/CAD 4-hour Forex Chart

EUR/CAD 4-hour Forex Chart

This pair just breezed through the resistance around the 1.3300 handle a few days back, which suggests that euro bulls are charging again.

The ceiling close to the 1.3600 major psychological mark kept gains in check, putting EUR/CAD back in correction mode.

So where are buyers looking to hop in?

The handy-dandy Fib tool shows that the 50% to 61.8% levels span the area of interest a.k.a. resistance-turned-support zone.

The 61.8% retracement level also lines up with a rising trend line and 200 SMA dynamic inflection point, which adds to its strength as a floor.

If any of the Fibs hold, EUR/CAD could resume the climb back to the swing high and beyond, so don’t miss out!

Technical indicators are also saying that the odds are in favor of more gains for the pair. The 100 SMA is safely above the 200 SMA to confirm the presence of bullish vibes while Stochastic is pulling higher from the oversold region.

Since there are no major economic releases from both the eurozone and Canadian economy this week, make sure you keep tabs on crude oil and bond yields.

European bond yields are on the rise again, following the latest upbeat NFP report that fueled expectations for higher borrowing costs.

Meanwhile, geopolitical tensions in Russia continue to stoke oil price rallies, which would likely lift the correlated Loonie AND overall inflation.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.