The EUR/CAD pair fell again during the session on Wednesday, breaking to a fresh, new low. I mentioned this pair the other day, and we have in fact made that fresh new low that I needed to see in order to start selling with any type of long-term intentions. The 1.47 level is offering a little bit of support at the end of the day, but ultimately I think that this market continues much lower. Certainly we are in a downtrend and it appears that the 20 day moving average is been quite respected by traders in this market.

The Canadian dollar is strengthening a bit against the US dollar, so that of course will carry over into this pair. On top of that, the Euro looks a bit susceptible to selling pressure as well, so we have a bit of a “perfect storm” in this process pair in order to see more bearishness.

Oil markets will have an effect on this pair.

Remember, the Canadian dollar is a bit of a proxy for the oil markets. Pay attention to those commodity markets to see where the direction of the Canadian dollar will go. As oil markets rise, this pair should continue to fall. On top of that, there is a lot of concern about deflation in the European Union, and that means quantitative easing. If that’s the case, you can expect the Euro to sell off against just about everything, let alone a currency that is backed up by a commodity that is going fairly well at the moment. In fact, in fact, I believe that the light sweet crude market is about to make a major breakout, and that should push this pair down as the Canadian dollar should be the beneficiary of a breakout above the $105 level in that particular commodity. If we get that, this pair will become more about the Canadian dollar and less about the Euro. However, the fact that the Euro does in exactly look strong isn’t exactly helping this pair bounced either. I am very bearish.

EURCAD Daily 61214

Related Articles
  1. Credit & Loans

    Before you Buy that Home: Shop for the Best Loan

    Before even starting to search for a home, the first thing you need to do is get pre-qualified for a home mortgage.
  2. Investing

    5 Reasons to Rethink Retirement Investing

    Wherever you fall on a retirement crisis, consider these 5 reasons to rethink your investing strategy.
  3. Active Trading

    10 Books Every Investor Should Read

    Want advice from some of the most successful investors of all time? Check out our reading list.
  4. Investing Basics

    How Interest Rates Affect The Stock Market

    Whether you're buying lunch, a home or a stock, you're influenced by interest rates.
  5. Home & Auto

    Simple Ways To Invest In Real Estate

    Owning property isn't always easy, but there are plenty of perks. Find out how to buy in.
  6. Economics

    What Is Fiscal Policy?

    Learn how governments adjust taxes and spending to moderate the economy.
  7. Investing Basics

    Starting A Small Business For Less Than $1000

    Here are the top niche businesses which can be started for less than $1000.
  8. Insurance

    How to Choose Permanent Life Insurance Policies

    When does it makes sense to buy a guaranteed rather than a non-guaranteed life insurance policy?
  9. Credit & Loans

    The Best Alternatives to Payday Loans

    There are better ways to handle a financial emergency between paychecks, including the 12 described here.
  10. Retirement

    Should You Pay Someone to Create a Retirement Plan?

    Nobody likes to pay for help, but it may be necessary to shell out the extra cash for proper retirement planning help.
  1. How does my spousal Social Security benefit work?

    If you have never worked or paid Social Security taxes, you will not be eligible to receive Social Security retirement benefits ... Read Full Answer >>
  2. Why are most airplane tickets nonrefundable?

    Airplane tickets are generally nonrefundable, because the majority of tickets sold are discount tickets. In exchange for ... Read Full Answer >>
  3. Is North Korea a developed country?

    North Korea is one of the poorest and least developed countries in the world. It is far from a developed country. Because ... Read Full Answer >>
  4. Does Netspend accept wire transfers?

    NetSpend accepts some types of wire transfers to add money to the prepaid debit cards it issues to its customers. There are ... Read Full Answer >>
  5. Is Mexico a developed country?

    As of 2015, Mexico is not a developed country. However, it beats the majority of its peers in the developing world on most ... Read Full Answer >>
  6. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>

You May Also Like

Trading Center