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Risk appetite seems to be extending its stay in the markets, and it looks like the optimism continues to boost crude oil. Can this mean more gains for the correlated Loonie?

Currency Snapshot:

Major Pairs Price Performance from MarketMilk
Major Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Swiss PPI at 8:30 am GMT
  • U.K. retail sales at 10:30 am GMT
  • Euro zone final CPI readings at 11:00 am GMT

What to Watch: EUR/CAD

EUR/CAD 1-hour Forex Chart
EUR/CAD 1-hour Forex Chart

Crude oil has been on a tear these days as market watchers are hopeful that the tariffs on this commodity could be lifted sooner or later. This optimism could keep the correlated Loonie supported and allow the EUR/CAD downtrend to pick up.

EUR/CAD Trend Analysis from MarketMilkEUR/CAD Trend Analysis from MarketMilk
EUR/CAD Trend Analysis from MarketMilk

The pair has been cruising below a descending trend line visible on longer-term time frames but has formed higher lows above a short-term rising trend line recently. Price is testing this support zone, and a break below it could confirm that the selloff could carry on.

EUR/CAD Volatility from MarketMilk
EUR/CAD Volatility from MarketMilk

A short entry at 1.4500 could be enough to catch a short-term breakdown until the swing low near 1.4450 or lower. The pair moves an average of 53.5 pips per day, so a stop loss of around the same size could offer a decent R:R for a quick trade.