28 Apr 2015
EUR/CAD: No bulls in sight; a fade on rallies
FXStreet (Guatemala) - EUR/CAD is currently trading at 1.3197 with a high of 1.3232 and a low of 1.3143.
EUR/CAD is testing back below the 1.32 handle after a bout of supply that came in at 1.3220 resistance capping the bulls efforts from 1.3145 on the minor recovery out of yesterday's supply at 1.3240. USD/CAD bears are still in control after a huge rebound from the 1.28 mark this month down to test 1.2020 support at time of writing.
Oil has staged a come back in to the region of the $55-56 bbl mark from March lows and this gives the Loonie some support as well as an optimistic BoC who made a surprise move earlier this year in cutting rates at the drop of a "barrel of oil" to help boost growth in the economy and have since refrained for acting further in anticipation of improvements in the economy.
This coupled with a weak EZ and currency, technically, analyst at TD Securities explained that the medium-to-longer term trend in EUR/CAD remains decisively lower, even if the cross remains in short-term consolidation mode. "We still rather think that scope for EUR gains is quite limited at the moment. We look for strong resistance to EUR rebounds between 1.3400/50 and think that levels nearer 1.33 should cap near-term gains." The analysts added, "We still favour the downside here overall; price signals suggest a pause in the trend certainly but there is no strong evidence of a reversal at this point. Look to fade EUR rallies."
EUR/CAD is testing back below the 1.32 handle after a bout of supply that came in at 1.3220 resistance capping the bulls efforts from 1.3145 on the minor recovery out of yesterday's supply at 1.3240. USD/CAD bears are still in control after a huge rebound from the 1.28 mark this month down to test 1.2020 support at time of writing.
Oil has staged a come back in to the region of the $55-56 bbl mark from March lows and this gives the Loonie some support as well as an optimistic BoC who made a surprise move earlier this year in cutting rates at the drop of a "barrel of oil" to help boost growth in the economy and have since refrained for acting further in anticipation of improvements in the economy.
This coupled with a weak EZ and currency, technically, analyst at TD Securities explained that the medium-to-longer term trend in EUR/CAD remains decisively lower, even if the cross remains in short-term consolidation mode. "We still rather think that scope for EUR gains is quite limited at the moment. We look for strong resistance to EUR rebounds between 1.3400/50 and think that levels nearer 1.33 should cap near-term gains." The analysts added, "We still favour the downside here overall; price signals suggest a pause in the trend certainly but there is no strong evidence of a reversal at this point. Look to fade EUR rallies."