A friend sent along a EUR/CAD chart shat shows how much support the pair is running into in the near term.
The pair has fallen nearly 1200 pips since late March and the daily indicators are oversold. We’ve also reached the measured target of the head & shoulders top.
EURCAD daily
The two main events to watch are the Canadian jobs report next Friday and the Bank of Canada meeting is July 16. I think the BOC will take a slightly more hawkish stance but with some harsh words for the Canadian dollar. That might be worth a kneejerk but jawboning never works unless you’re prepared to back it up.
Ideally, I’d like to see a bounce in the next week and look to sell on the BOC headlines or a good jobs report. I wrote about USD/CAD earlier and I had hoped to see a bigger bounce there too but it didn’t materialize and I’m not sure it will.
