The cross extended the gains on the second day as well. The 20Dsma has been acting as strong support, manages to erase most of the previous week loss.
The New Housing Price Index (NHPI) rose 0.1% in July, following a 0.3% increase in June. The loonie strengthens after the BOC hold the interest rates but bulls short lived. The Bank of Canada said Wednesday that the nation’s economic growth remains on pace.
The cross slowly approaching to the resistance zone. The weekly resistance seems at 1.5020. Intraday resistance seems at 1.4955, 1.4990 and 1.5010.
As of now at today’s Asia’s session the cross unable to breach the previous day’s high 1.49514. In the four hour chart, the cross printed triple top at 1.49514 and 1.49500.
Fresh buying advisable above 1.4960 aims at 1.4985 and 1.5010 initially, later likely to extend further 1.5100 and 1.5190.
If today the cross close above 1.5050 the bulls aim at 1.5100 and 1.5200 in the next week.
In the coming week Canadian economic data limits to manufacturing sales on Wednesday and CPI or Friday. On the euro, except Tuesday’s Germany ZEW economic sentiment and CPI nothing attracts investors. These factors remain bullish of this cross.