19 Jan 2015
EUR/CAD bears licking their lips
FXStreet (Guatemala) - EUR/CAD is currently trading at 1.3891 with a high of 1.3943 and a low of 1.3811 and up 0.34%.
EUR/CAD is recovering from last week's sharp decline from the 1.42 handle but, again, but the bulls are battling for ground. analysts at TD Securities explained that intraday price action so far is forming a bullish engulfing signal around Friday’s real body; "If the EUR can hold that performance through the close of the day, a minor gain may unfold in the next 1-2 days. The broader trend here looks negative though, in line with our assessment of longer-term risks."
Fundamentally, besides the price of oil in respect of the CAD, markets are distracted now by the ECB meeting that arrives on the 22nd. The event is likely to add volatility to the cross while the majority of the market is expecting the ECB to announce more front-loaded EGB purchases, and likely reacting to the initial shock in size and pace of EGB purchases. Until then, bears may take comfort in that bearish trend momentum is strengthening across a range
of timeframes which the analysts at TD Securities suggest should limit further gains from here (1.42/1.43) and grease the path for a drop towards 1.35 eventually.
EUR/CAD is recovering from last week's sharp decline from the 1.42 handle but, again, but the bulls are battling for ground. analysts at TD Securities explained that intraday price action so far is forming a bullish engulfing signal around Friday’s real body; "If the EUR can hold that performance through the close of the day, a minor gain may unfold in the next 1-2 days. The broader trend here looks negative though, in line with our assessment of longer-term risks."
Fundamentally, besides the price of oil in respect of the CAD, markets are distracted now by the ECB meeting that arrives on the 22nd. The event is likely to add volatility to the cross while the majority of the market is expecting the ECB to announce more front-loaded EGB purchases, and likely reacting to the initial shock in size and pace of EGB purchases. Until then, bears may take comfort in that bearish trend momentum is strengthening across a range
of timeframes which the analysts at TD Securities suggest should limit further gains from here (1.42/1.43) and grease the path for a drop towards 1.35 eventually.