Spreads are narrowing in a CAD-supportive manner and risk reversals are showing a moderation in the premium for protection against CAD weakness.The weekly chart is also bearish following the completion of a shooting star.
Investors tend to favor carry trades at times of optimism about global economic performance and stability; they shun them at times of market stress. The pair may likewise find volatility in news-flow related to the Eurozone debt crisis as well the extraordinary anti-deflation policy efforts from the Bank of Japan introduced in 2013.
Failure to close below the March 1st low-day close at 1316 this week would keep the rebound play viable next week. Initial resistance now at 1325 backed by 1339 with a breach above the 2016 high-day close at 1355 needed to mark resumption of the broader uptrend.
A US current account deficit means an economy is funded externally. The key point is that the funding needs of the US are only accelerating. AUD/USD turns from key support pivot- rebound testing initial resistance.
Two members of U.S. President Donald Trump’s Cabinet suggested Wednesday that Canada and Mexico might escape new tariffs on steel and aluminum, a potential bargaining chip in North American trade talks that heeds the “surgical approach” advocated by House Speaker Paul Ryan.
As Crude oil is one of Canada's largest exports, after oil drops most in three weeks...
Fundamental Forecast for EUR/CAD: Bullish
Crude oil is one of Canada's largest exports and as such, tends to be sensitive to fluctuations in crude oil prices and global growth expectations. And now outlook for Oil Fundamentals Turning Positive.
Support 1 = 1.5000
Target 1 = Prevoius High in TF Day
Since yen is traditionally seen as a low-yielding currency and as a risk aversion for North Korea escalates geopolitical risk, so that why we've been seen EUR/JPY climbing. For this week we look for slippage and it looks like the first signs of weakness. Resistance levels: 131.4