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The ECB is printing the results of its 18-month policy review!

What is the central bank saying? More importantly, how will it affect the euro’s prices?

Before moving on, ICYMI, today’s Asia-London session watchlist looked at CHF/JPY’s descending triangle support ahead of economic releases from both Japan and Switzerland. Be sure to check that out if it’s still a valid play!

And don’t forget to check our newly released real-time Currency Strength Meter!

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What to Watch: EUR/CAD

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

In case you were too busy dancing to Ed Sheeran’s “Bad Habits,” then you’ll know that the European Central Bank (ECB) is printing the results of its 18-month policy review today.

Word around is that ECB President Lagarde and her team will be more specific about their inflation targets. Specifically, they’ll talk about targeting 2% and not just “below but close to 2%.”

However, they’re also likely to borrow from their neighbors and hint that inflation can overshoot the 2% figure while they keep their policies accommodative until they see more growth.

Prospects of easy policies for longer can weigh on the euro, which is 30ish pips away from a key range resistance against the Loonie.

Is EUR/CAD a buy or sell?

If the ECB stays far away from tightening or tapering talks, then EUR/CAD could turn lower and drop back to its .4730 mid-range levels.

But if the central bank focuses on optimistic growth prospects, or if lower oil prices extend their downtrend and drags the Loonie with it, then EUR/CAD could finally break above its months-long range to retest its 1.4680 or 1.4800 areas of interest.