EUR/CAD’s renaissance is gathering some momentum. In the opinion of economists at Scotiabank, the pair could return to the 1.40-1.45 range.

EUR/CAD recovery gathers momentum

“The longer run (monthly) chart strongly suggests a major low and bullish reversal developed around the Aug push below 1.30. A strong gain for the Oct month overall will “confirm” the bullish reversal.”

“Short-term gains above the 200-day MA (1.3586) will add to positive momentum; note that this point roughly converges with the 38.2% Fib retracement of the 2022 decline (1.3548) and a break higher allows the cross to challenge major resistance on the daily chart at 1.3825 – the collection of highs from the spring/early summer. Above here should see the cross return to a 1.40-1.45 range. 

“Key support is 1.3420/25.”