EUR/CAD Price Forecast: Bullish continuation pattern forming

EUR/CAD is tipped to go higher if a bullish continuation pattern completes.
The price pattern is enhanced by the ADX indicator rising strongly above 20.
EUR/CAD could reach 1.5000 and beyond if it continues bullish momentum.

Joaquin Monfort FXStreet

EUR/CAD is rising strongly as diverging interest-rate expectations favor the Euro (EUR) over the Canadian Dollar (CAD).

The pair is trading at about 1.4950 at the time of writing and is forming a continuation price pattern (shaded blue rectangle) which – should it complete – could forecast probable higher prices to come.

EUR/CAD Daily Chart

Assuming that Wednesday’s close is above 1.4930 and the day ends as a bullish green candle, the pattern will be confirmed.

The Average Directional Indicator (ADX) is used to assess the strength of the trend and it is rising at above 20 further confirming the likelihood of the bull trend continuing.

If the pattern completes – as looks highly likely – the pair will probably rise to roughly 1.5000, where it will encounter resistance from the dark gray trendline. A break above the day’s highs would serve as confirmation.

It is also possible it could continue even higher to the resistance line at 1.5040.

A decline below 1.4839, however, would invalidate the pattern.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.