The Eurozone single currency appreciated about 230 base points against the Canadian Dollar during the past week. The currency pair breached both the 50-, 100– and 200-hour SMAs during last week’s trading session.
Currently, the exchange rate is trading near the upper boundary of a descending channel pattern at 1.5106.
If a resistance level formed by the upper boundary of the descending channel holds, a pullback towards the 50– and 100– hour simple moving averages at 1.4989 could be expected.
However, if the pair breaks the channel pattern, the next target for bullish traders will be at the 1.5300 region.
