The Euro has rallied significantly during the trading session on both Thursday and Friday, reaching towards the crucial 50% Fibonacci retracement level against the Canadian dollar. It is at roughly 1.4720, but above there we have a significant amount of noise based upon order flow lately, and of course the 1.4750 level. The 50 day EMA is in the vicinity as well, and as you can see the market will continue to show signs of exhaustion.
All things being equal, it’s likely that the market has gotten a bit overdone, and of course the Euro will continue to suffer due to the fact that the ECB has been a bit underwhelming with its recent interest rate cuts. However, keep in mind that the Canadian dollar is somewhat held hostage by the crude oil markets, which are under serious pressure at the same time. That being said, all things being equal we should follow the trend of the trend is most certainly negative at this point. Waiting for signs of exhaustion in this general vicinity above should be a nice trading opportunity, as we could go down to the 1.45 CAD level. A break down below there are tests the lows again, and then perhaps down to the 1.40 CAD level.
All things being equal we have seen a lot of choppiness but with a downward attitude should continue to take hold of the Euro against most currencies, and by proxy the Canadian dollar as it is representative of the biggest trading partner with the United States. Ultimately, if crude oil starts to pick up again and perhaps get a little bit of a bounce, then it’s possible that this market really starts to unwind. All things being equal it is still an area where you start to fade just above, so looking for exhaustion is the play.
All things being equal, it’s likely that the market has gotten a bit overdone, and of course the Euro will continue to suffer due to the fact that the ECB has been a bit underwhelming with its recent interest rate cuts. However, keep in mind that the Canadian dollar is somewhat held hostage by the crude oil markets, which are under serious pressure at the same time. That being said, all things being equal we should follow the trend of the trend is most certainly negative at this point. Waiting for signs of exhaustion in this general vicinity above should be a nice trading opportunity, as we could go down to the 1.45 CAD level. A break down below there are tests the lows again, and then perhaps down to the 1.40 CAD level.
All things being equal we have seen a lot of choppiness but with a downward attitude should continue to take hold of the Euro against most currencies, and by proxy the Canadian dollar as it is representative of the biggest trading partner with the United States. Ultimately, if crude oil starts to pick up again and perhaps get a little bit of a bounce, then it’s possible that this market really starts to unwind. All things being equal it is still an area where you start to fade just above, so looking for exhaustion is the play.