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Fiscal stimulus talks energized Asian session bulls today and pushed higher-yielding bets higher against the safe-haven dollar.

Will the risk-on trading environment extend to London session trading?

Before we talk about how EUR/CAD may present good trading opportunities, check out the top market headlines in the last couple of hours:

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

Upcoming Potential Catalysts on the Economic Calendar:

  • U.K.’s construction output at 6:00 am GMT
  • U.K.’s monthly GDP at 6:00 am GMT
  • U.K.’s industrial production at 6:00 am GMT
  • U.K.’s manufacturing production at 6:00 am GMT
  • France’s industrial production at 6:45 am GMT
  • Italy’s industrial production at 8:00 am GMT
  • Canada’s labor market data at 12:30 pm GMT

What to Watch: EUR/CAD

EUR/CAD 4-hour Forex Chart
EUR/CAD 4-hour Forex Chart

Higher oil prices and second wave concerns in the eurozone dragged EUR/CAD lower yesterday, enough to break a key support level.

But that was yesterday. The pair has since found support at the 1.5500 zone and has been poppin’ up dojis on the 4-hour chart. Heck, even Stochastic is hinting at the euro’s oversold conditions!

Was EUR/CAD’s breakdown (downside breakout) just a fakeout? There are no top-tier reports scheduled from the eurozone but Canada is printing its labor market data today.

If Canada’s jobs numbers come in better than markets had expected, then traders may pile on to EUR/CAD’s losses and drag the pair to new October highs.

A downside surprise, on the other hand, or speculations of more stimulus from the ECB, could push EUR/CAD back above the 1.5550 previous support level and encourage a trip to the 1.5600 previous area of interest.