The EUR/CAD currency pair is currently fluctuating within a defined range that has persisted for ten weeks, characterized by limited directional momentum. To shift the existing sideways trend into a more pronounced movement — either upward or downward — an impactful breakout would be necessary. Currently, the price action has established a lower boundary near 1.4890 and a sloping upper limit around 1.5100, indicating the pair remains entrenched in a range-bound scenario for both short and medium-term evaluations. However, the long-term outlook remains bullish.
As the EUR/CAD continues its oscillation within this corridor, it is expected to maintain its position until a clear breakout, either upward or downward, occurs. Despite the prevailing longer-term uptrend, which might suggest a potential for an upward breakout, the flat nature of the lower range boundary introduces an element of uncertainty. This ambiguity diminishes any strong bullish bias, as the range’s flat bottom subtly leans toward a potential downside break.
Should a breakout to the upside take place, the pair may target a level around 1.5319, corresponding to the Fibonacci 61.8% extension of the range’s height. A robust breakout would likely need to be substantiated by a pronounced bullish candlestick that closes high above the established range or by consecutive bullish candlesticks breaking through the resistance level.
Conversely, a decisive move below the established lower boundary of 1.4890 may bring the price down to approximately 1.4690, the 61.8% Fibonacci extension in the opposite direction. In summary, EUR/CAD remains in a state of flux, awaiting a significant directional shift to redefine its trend.
