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EUR/CAD: Now buying dips on reversal in the euro


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FXStreet (Guatemala) – EUR/CAD is currently trading at 1.3617 with a high of 1.3708 and a low of 1.3526.

EUR/CAD is well bid, as are all the euro crosses on the back of shifts in sentiment in the market as explained by Camilla Sutton, chief currency strategist at Scotiabank here. Meanwhile, USD/CAD is adding fuel to the fire also, making a minor recovery from Aprils downtrend, finding support below the 1.20 handle and demand at 1.2050/00 zone.


Analysts at TD Securities noted the shift in the cross and explained that they have had to revise their own thoughts on EUR/CAD’s technical outlook over the past week. “With the cross moving above 1.34, bear pressure has been relieved and the cross looks poised to extend higher in the near-term at least. We think a retest of the pivotal 1.38/1.39 area might be on the cards.”


They added, “Longer-term signals are turning potentially more constructive as well (early days still in this process and longer-term trend momentum remains bearish); this warrants attention; a strong run higher in the next few weeks for the EUR would change the technical landscape quite significantly. Now, we prefer to buy dips.”