Chart of the Day: EUR/CAD Rallies to 2 Year Highs

EUR/CAD rallied to fresh 2 year highs on Wednesday, reaching the highest levels since January of 2016 ahead of the Bank of Canada (BOC) interest rate statement.

The BOC has hiked interest rates three times since July but is expected to keep its benchmark interest rate on hold at 1.25 per cent on Wednesday.

Momentum in EUR/CAD is clearly to the upside with little in the way of resistance.

Withstanding any hawkish surprises from the BOC, look for price to potentially reach to the upside levels of 1.6101 and then 1.6332.

The moving averages on the chart (200 SMA, 50 SMA and 21 EMA) are nicely spaced apart indicating a strong uptrend.

To the downside, look for support around the 21 period EMA (red) around which price hugged during its ascent.

RSI is curved upwards indicating continued upside momentum.