EUR/CAD likely to consolidate recent gains by pulling back towards 1.4957 - Natixis

In view of the analysis team at Natixis, given that the daily stochastic is nearing overbought territory and that daily volatility is tending to subside for EUR/CAD cross, the pair is likely to consolidate recent gains by pulling back towards 1.4957 (daily Bollinger moving average) before eyeing the support at 1.4840 (daily parabolic).

Key Quotes

“These pullbacks will enable the EUR/CAD to gather its breath before staging new rebounds. The development of an upward bubble in the daily chart points to the pair having significant upside potential. A breakout above the resistance at 1.5220 (upper band of daily Bollinger) would strengthen this bullish sentiment, instilling new upward momentum towards 1.5287 (November 2016 high) before 1.5380 (Fibonacci projection) and the resistance at 1.5537 (monthly parabolic).”

“Take advantage of any pullbacks towards 1.4957, possibly 1.4840 to buy the EUR/CAD, with as major target 1.5537 (setting the stop loss below 1.4720).”