EURO LOOKING TO GO BULLISH ON CAD OFF MONTHLY SUPPORT
Thas both fundamental and technical supporting a Long Term Bullish move which I will break down for you
Fundamentals
- EURO Advanced against all major currencies over the course of the last month but failed to make gains on CAD due to people pricing in a CAD interest rate hike at next weeks meeting. (which I feel CAD are still a couple of months away from one, if you go back to Jan Govenor Poloz was talking about a potential cut in rates) CAD has strengthened on the back of an oil price increase prior to last weeks Governor meeting between Poloz, Draghi, Kuroda and Carney) The oil price has now dropped below the key 45 dollar handle. If the BOC doesn't hike rates then you will see the long positions turned into shorts.
EURO still has plenty of room to go up.
ECB are looking at removing tapering and interest rate rise which has been on the table longer then CAD potential rate rise, there is more evidence supporting the EURO as they have been producing good data since December 2016, they have got past the political uncertainty they faced. Investors are growing very confident on the EURO which has been undervalued for some time due to its QE programme they have maintained for some time. Draghi has changed tone from very dovish to slightly bullish.
Technicals - the price of 1.4680 is a big level on the bigger timeframes as you can see multiple bounces off this on weekly/monthly timeframes. We have approached that price and on it now.
On the monthly Timeframe move from August 2012 you can see its on the key level of the Fibonacci retracement 38.2.
You have the 20/50 MA just under current market price which will be huge support in favour of bullish trade as well as the 20 MA on the weekly Timeframe
Potentially forming a Double Bottom on the 4H candle to provide confirmation on entry
Lets see how this plays out - Target 1.51
Fundamentals
- EURO Advanced against all major currencies over the course of the last month but failed to make gains on CAD due to people pricing in a CAD interest rate hike at next weeks meeting. (which I feel CAD are still a couple of months away from one, if you go back to Jan Govenor Poloz was talking about a potential cut in rates) CAD has strengthened on the back of an oil price increase prior to last weeks Governor meeting between Poloz, Draghi, Kuroda and Carney) The oil price has now dropped below the key 45 dollar handle. If the BOC doesn't hike rates then you will see the long positions turned into shorts.
EURO still has plenty of room to go up.
ECB are looking at removing tapering and interest rate rise which has been on the table longer then CAD potential rate rise, there is more evidence supporting the EURO as they have been producing good data since December 2016, they have got past the political uncertainty they faced. Investors are growing very confident on the EURO which has been undervalued for some time due to its QE programme they have maintained for some time. Draghi has changed tone from very dovish to slightly bullish.
Technicals - the price of 1.4680 is a big level on the bigger timeframes as you can see multiple bounces off this on weekly/monthly timeframes. We have approached that price and on it now.
On the monthly Timeframe move from August 2012 you can see its on the key level of the Fibonacci retracement 38.2.
You have the 20/50 MA just under current market price which will be huge support in favour of bullish trade as well as the 20 MA on the weekly Timeframe
Potentially forming a Double Bottom on the 4H candle to provide confirmation on entry
Lets see how this plays out - Target 1.51
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