EURCAD Area Of Interest At 1.6350 To Attract More Bulls?

EURCAD has formed higher lows connected by a rising trend line that’s been holding since late May, and the pair is currently testing this support zone around the 1.6350 minor psychological level alongside key Fibonacci retracement levels.

The trend line coincides with the 50% Fibonacci retracement level at 1.6358, which might be enough to attract bullish momentum and keep the uptrend intact.

A larger correction could still reach the 61.8% Fib at 1.6321, which lines up closely with the ascending trend line extension and could serve as the line in the sand for a bullish pullback. Note that this area also overlaps with former resistance that has since flipped to support, adding another layer of confluence for potential buyers.

If any of these levels hold as a floor, EURCAD could resume the rally toward the 38.2% Fib at 1.6396 and eventually retest the swing high at 1.6518. A break below the 61.8% Fib and the rising trend line, on the other hand, could open the door to a deeper decline toward the 100% retracement at 1.6198.

The 100 SMA is now above the 200 SMA to confirm that the path of least resistance is to the upside, and that the climb is more likely to gain traction than to reverse. Both moving averages are also converging near current price levels, reinforcing the support zone and adding dynamic backing for a potential bounce.

Stochastic is turning up from near the oversold region, reflecting exhaustion among sellers and a possible return of bullish pressure. The oscillator’s upturn from these lows is an encouraging sign for buyers looking to re-enter the trend.

RSI, meanwhile, has some room to climb before approaching overbought territory, suggesting that there’s still plenty of upside fuel available should buyers step in. A sustained move higher in the oscillator could confirm that the uptrend is ready to resume.