After OPEC' announcement about global demand decreasing yesterday, it put downward pressure on oil. Canada being a major oil exporter have a very oil-affected currency. Decreasing oil prices usually weaken the CAD.
ECB is expected to start decreasing their stimulus programme tomorrow, while keeping rates unchanged. Press conference after the rate will be the key event.
Technically, after forming a double bottom after the sell off reached 50% retracement of the previous bullish run, price is now consolidating below the big resistance area. A 50 SMA on a daily timeframe is also in that resistance area.
A break of the area could provide a good long opportunity or the price could bounce lower and continue the bearish run.
My personal bias is long, I do not think the price is done retracing from its sell off, but any technical set up can be undone by fundamentals after the press conference.
Happy Trading!
ECB is expected to start decreasing their stimulus programme tomorrow, while keeping rates unchanged. Press conference after the rate will be the key event.
Technically, after forming a double bottom after the sell off reached 50% retracement of the previous bullish run, price is now consolidating below the big resistance area. A 50 SMA on a daily timeframe is also in that resistance area.
A break of the area could provide a good long opportunity or the price could bounce lower and continue the bearish run.
My personal bias is long, I do not think the price is done retracing from its sell off, but any technical set up can be undone by fundamentals after the press conference.
Happy Trading!
Comment:
Comment:
With ECB minutes away, daily 50 SMA on EURCAD keeps rejecting the price from going higher. Expected ECB announcement to start cutting the QE could give the necessary momentum for the price to break above the resistance are. Good Luck!