EURCAD Channel Break
EURCAD price action is worth monitoring here. The pair has been trading lower within a broad bearish channel over since Q3 last year. However, the recent test of the 1.3876 level support has seen price finding firm demand. With the pair potentially carving out a double bottom here, and both MACD and RSI turning higher, I’m eyeing a break of the channel and a broader move higher. The level I’ll be focusing on is a break of 1.43 targeting a move up to 1.4618. By this point, we’ll have broken the channel top and cleared the local high so should have some decent momentum to play into.
Keep An Eye On
The pull-back in oil prices is seeing CAD soften a little here. While clear upside risks for oil remain, given the ongoing conflict in Ukraine, any further correction lower in oil should play nicely into a topside move here. Additionally, the ECB is turning closer towards tightening in its outlook. Given the recent downside in EUR, and the risks from the Ukraine conflict, any ceasefire or resolution agreed, even temporarily, will likely see EUR firmly higher
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.