- EUR/CAD loses momentum near 1.6000 in Friday’s early European session.
- Positive outlook of the cross prevails above the 100-day EMA, with bullish momentum in the near term.
- The immediate resistance level is seen at 1.6054; the initial support level is located at 1.5900.
The EUR/CAD cross attracts some sellers to around 1.6000 during the early European trading hours on Friday. All eyes will be on the Canadian employment report for July, which is due later on Friday. Canada is expected to show moderate job growth and a higher Unemployment Rate in July. If the report shows a weaker-than-expected outcome, this could weigh on the Canadian Dollar (CAD) and create a tailwind for the cross.
Technically, EUR/CAD keeps the bullish vibe on the daily chart, with the price holding above the key 100-day Exponential Moving Average (EMA). The path of least resistance is to the upside, as the 14-day Relative Strength Index (RSI) stands above the midline. This suggests bullish momentum in the near term.
The first upside target to watch for the cross is seen at 1.6054, the high of August 7. Extended gains could see a rally to 1.6100, representing the psychological mark and the upper boundary of the Bollinger Band. Further north, the next hurdle is located at 1.6152, the weekly high of March 16, 2018.
On the other hand, the initial support level for the cross emerges at 1.5900, the round figure and the low of August 5. A breach of this level could expose 1.5815, the lower limit of the Bollinger Band. The additional downside filter to watch is 1.5740, the 100-day EMA.
EUR/CAD Daily Chart
