CAD setting up for significant rally vs EUR

Different cross, same macro CAD strenght singals. EURCAD seems to be breaking down below a multiyear support trendline (yellow). Current levels (green) could act as support on oversold conditions and trigger a short term bounce to re-test the broken trendline, but the ultimate target could be as low as the 1.20 area in the next couple of years.

Comment:

... and there it goes!!

Trade closed manually:

EURCAD has followed our script laid out last October and has reached below the 1.34 lvl. there is potential for it to move further lower to the ultimate long term target in the 1.20s; however, the cross is showing signs of being oversold in the short term which could signal the latest impulse is pretty much done for now, or that at least we could see a rebound to the 1.40 area in the next few weeks. Once there, we will reevaluate our long term views and targets.

Comment:

the cross managed to squeeze lower to our original target in the 1.20's. The structure looks now complete and with very oversold lvls. From here I would expect a EUR recovery to the 1.40s in the next few weeks/months.