Good morning my friends! Today I am looking to short the EUR/CAD. What a run this pair has been on since mid March trading from about C$1.57 per Euro, to its current level around 1.4150. Can this thing run any lower?
I think so, and I think the market is gunning for that psychologically important level at 1.4000. Canadian fundamentals are still strong with Housing Starts and Trade balance better than expected on Friday, and new housing prices and industrial data slightly better than expected today. Let’s also remember, the market is expecting a rate hike in July, so we should see the pair trend lower from here.
Technically, the pair has been in a very strong trend, but seems to have found resistance at 1.4150. We will look for a break of this level and look to target between 1.41 and 1.40.
Short EUR/CAD at 1.4130, stop at 1.4180, pt1 at 1.4100, pt2 at 1.4050
Please remember to never risk more than 1% of your account on any trade. Adjust your position sizes accordingly!