EURCAD opened the week with a bullish trendline breakout. Prices soared to 3-month highs intraday today as a result, boosted by sentiment.
Moving away from the triangular consolidation suggests the next target up stands at around 1.5876. We extracted the pip range at the open of the triangle formation to calculate this target.
A fall back to the trendline could be expected to retest the trendline. However, there are no indications of a bearish reaction so far. Therefore, prices could extend higher in the short-term until an RSI signal indicates otherwise.
The median regression is likely to maintain the bullish sentiment in the short-term.
Near the upper regression, EURCAD is expected to lose momentum. This is near 1.56. When it comes to channels, we use visual signs to identify up/down barriers.
A pullback could occur following a rejection at the upper channel. The indicator should provide signals to support the exhaustion though. However, for further upsides outside the channel, we prefer the median regression to hold bears firmly.
Sliding below the median base is likely to shift eyes on the TR1 (turned support) trendline next.
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