EUR/CAD — At High-Value Area With Yield Spread Divergence

I’ve endorsed playing the long side in the Euro against the US Dollar, but this risk has also been partly diversified via shorting the Canadian Dollar in favor of the shared currency. The macrostructure of higher highs remains supportive of longs despite the early ’19 setback. We only had to wait until the price came to interact with the right levels, which it has since last week. The temporary bottom found around the 1.52 coincides with an old range area and the origin of a strong demand imbalance. The level the pricing deals is tentatively coming to termination as market makers’ bids at the 100% proj target further underpin the pair. Besides, the German vs Canadian bond yield spread shows a major divergence unlike any recent instances in the last few months. Long should be the path of least resistance, considering that on top of all arguments exposed, Oil faces major hurdle at $52.00.