EUR/CAD: Strong upside potential for the cross - Natixis

In view of the Micaella Feldstein, Research Analyst at Natixis, the sharp increase in the daily volatility and the buy signals on the daily indicators of EUR/CAD suggests a strong upside potential for the cross.

Key Quotes

“Besides, important technical thresholds at 1.4190 (weekly Bollinger moving average) and at 1.4260 (weekly parabolic) have been eroded, supporting our view for a stronger recovery in the coming days.”

“Against this backdrop, we’ll watch out the resistance at 1.4390-1.4403 (9-month moving average) whose break would unleash strong upside potential to 1.4535 (monthly Bollinger moving average) and to 1.4733 (weekly Bollinger upper band).”

“The supports stand at 1.4260, at 1.4190, at 1.4090, at 1.3970 and at 1.3780-1.38.”