Techs piling into EUR/CAD shorts, USD/CAD spills lower

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EUR/CAD has continued down to 1.2420 after breaking the all-time low at 1.2450 as technical and black box signals scream ‘sell’. The trade has spilled over into USD/CAD, which is at 1.0188 after climbing as high as 1.0250.

Minor trendline support and the lows at 1.0175/65 make this an enticing entry point for USD/CAD longs. The fundamental picture hasn’t changed and the upcoming Chinese data could hurt Canada.

Author: Adam Button

Adam Button is the managing editor of ForexLiveâ„¢. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

7 Comments

  1. Adam:
    Shouldn’t it hurt the Euro as well? I personally believe they will botch the data tonight but, just in case the data is bad, where does EUR/CAD go? Assuming, GBP/CAD will run up again (thanks for the info this morning on going short GBP/CAD… I was long and in the red but, it helped manage)
    thanks

  2. It is hurting the euro but remember that EUR/USD is a much bigger market than EUR/CAD, so it doesn’t show up.

    I just peaked back at GBP/CAD… damn, shorts at 1.5790 were a great idea, should have done that one myself.

  3. I’m hoping for a dip back to upper 1.0130’s and possibly 1.0125 to enter. Everything is as perfect as you can ask for pretty with this technical set up. 13-day SMA is still above the 144 &169-day EMA’s, RSI bounced off of the 40-area, price found support at the 50% retracement and the 200-day SMA, bull-flag formation, an RSI-bullish-divergence that led to the last leg up, and the RSI is dropping faster than price possibly seeding another bullish-divergence (and by the way I observe divergences, this already is one), and even a nice Elliot-wave set-up to throw in just for shits and grins.

  4. It’s not even close to too late, to be a seller on short term consolidation gbp/cad. Back to 1.5740’ish. The pair has been consolidating it’s 5 1/2 years worth of losses, for the last 2 years and that’s finished up. At least, I think it is. Mainly, because of how price is coming out of the 2 year consolidation. The 30, 50 and 100 week moving averages are aligned perfectly for a massacre. 200, obviously, up above. If not, you at the least can get to 1.55 on the Head and Shoulders target. But, I think this pair’s going to get blasted. That weekly moving average alignment, is luscious.

  5. Sorry, but there’s a typo in my above comment. That’s supposed to be the 55 week moving average, not 50. I just checked to see if it mattered and it does, a lot.

  6. what is expected now?

    will it follow the uptrend ?

  7. It just got caught in the squeeze. Same game plan.

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