EUR/CAD cup and handle formation. Too good to miss…
A beautiful cup and handle have been formed on the EUR/CAD daily chart and is poised for a remarkable breakout, WHY? The euro has been heavily longed by institutional traders compared to heavy short that was added last week to the CAD. Oil has had a tough start to the week and will continue to fall (our bias) most economies were banking on a COVID vaccine/recovery by mid-October, which is now looking not so likely, oil reserves once again are stocking up and supply is outstripping demand, this is putting pressure on the commodity-related Canadian dollar.
The Euro, on the other hand, is proving to be as strong and resilient as the USD once was. With Brexit talks this week diminishing hopes of a deal, a no-deal Brexit is more likely, pushing the euro higher.
Watch this pair closely in the coming weeks and you shall be rewarded with some big pips.