EUR/CAD Forecast Today 29/05: Stall As 1.61 Resistance Holds

(MENAFN- Daily Forex)

The euro initially rallied against the Canadian dollar but continues to struggle at the 1.61 level. With that being the case, I think we are going to stay in the same consolidation range that we have been in for a while between the 1.61 level above and the 1.59 level below.

The 50-day EMA and the 200-day EMA indicators are flat, and therefore, I think it just shows how much we are struggling to really get going here. If we were to break above the 1.6150 level, then it's possible that we could go to the 1.6250 level, but right now it just does not look like we have the momentum to do that.

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The euro is pretty limp, and of course, the Canadian dollar might get a little bit of a boost against certain currencies due to the fact that there is so much uncertainty when it comes to crude oil around the world. Ultimately, I think this is a lot like other markets right now where we simply just don't know what to do with risk appetite.

After all, the risk appetite around the world is being driven by a handful of potential headlines coming out of the Middle East, and while that may not directly influence the EUR/CAD pair, it certainly has an influence on how traders behave in general. If we do have to worry about energy in the European Union this winter, that obviously will weigh upon the euro and it could, at least in theory, help the Canadian dollar, so that might be something to watch down the road. Ultimately, this is a market that I think stays range bound.

EURUSD Chart by TradingView

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