EURCAD...Downtrend done for now. Poised for revery.

EURCAD reached our original target in the 1.20s as I suggested a few weeks/months ago. Fundamentals and data still support CAD; however, the sentiment for EUR is extremely negative and the impulse structure looks complete and oversold. Based onthis, I would expect a recovery to the low 1.40s area in the next few weeks/months, where some resistance will be found, before evaluating if the downtrend will continue in the future. Neutral/long for now.

Comment:

As we suggested 6 months ago, EURCAD has posted a sharp recovery and has reached our target in the 1.40s where we turn neutral and will wait for further developments as the recovery looks complete for now.

Comment:

After reaching our target in the 1.40s for the current bounce, the cross has continued to move higher and is retesting the trendline that broke back in 2021 and started the move lower. We think this trendline should hold the bounce and the cross should start heading south again in the near future. We favour shorts at current lvls (1.48-1.51 area).