The EURCAD’s decline from August highs has now taken price into a key inflection point; the ascending trend line from 2015 lows. The ECB’s October monetary policy meeting saw the Central Bank announcing that they would consider cutting interest rates further as well as expanding their quantitative easing program when they re-assess economic conditions at their December meeting, casting a very bearish shadow over the single currency.
The Bank Of Canada meanwhile has refrained from further easing at its recent monetary policy meeting and with Oil having put in an interim base, the potential for further upside in energy prices should see the Canadian Dollar trading firmer.
- Last week saw price retest the longer term bullish trend line and fail to close below. Whilst this low hold, bias remains to the upside. However, a confirmed breach of the 1.4360 low paves the way for further downside. Price has also broken below key support, now turned resistance which should cap price on upside rebounds against a bearish VWAP.
- Look to sell a move below 1.4360, which should be confirmed by bearish Order Flow, with stops above the recent swing high targeting a move down into 1.41 area support initially
- Update: Move stops to entry (1.4350)
EURCAD Longer Term Chart
EURCAD Local Chart