The cross faced strong selling pressure between 1.4010 and 1.4035 on a weekly basis. The cross has been trading in a range between 1.3700 and 1.4035. Either side will provide further room to trade at 1.4300 or 1.3400. The monthly support is found at 1.3800. The cross is trading at a 2-month high. We recommended buying with sl 1.3385. The pair made triple bottom at 1.3400 edging higher. After a strong rally, the pair corrected towards 100Dema facing resistance at 200Dsma. Today, ahead of Canada CPI and core retail sales data, CAD is trading lower against the euro.
The nearest resistance is seen at 1.3940 and 1.3955. Support is found at 1.3860 and 1.3820. The trend favours buying with sl 1.3700. Due to the absence of data from the eurozone, the trade depends on CAD data. In case data prints positive readings, we recommend to sell and vice versa.
Trade: Selling is available below 1.3860 with immediate targets at 1.3825 and 1.3800. Selling is likely to accelerate below 1.3800 with targets at 1.3740 and 1.3700.
Buying is available above 1.3960 with targets at 1.4000, 1.4030, and 1.4050. We expect the pair to reach 1.4160 and 1.4200 in the extreme case.
In case bulls manage to close above 1.4050, they will aim for 1.4200 and 1.4300 next week.
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