EURCAD Breaking Out
The EURCAD long idea issued last week has triggered on the break above the 1.3198 level, with the market now looking to be carving out a stronger basing formation. The test of the initial target at 1.3384 will be key for the pair with bulls needing to see a break above this level to confirm a proper shift in sentiment. Looking at the latest data, the retail market has just flipped net-short which means the move is still tentative though there is plenty of room for a fuller breakout to develop as retailers pile on shorts. The outlook remains bullish above the 1.3198 breakout level with 1.3766 the broader target on a break of 1.3384.
Keep an Eye On
Canadian CPI today will be closely watched. Given that the BOC has been the most hawkish of the G10 central banks so far it is now in an interesting place. While the bank has cited the need to continue pushing ahead with tightening while inflation remains elevated, it is much closer to neutral than other central banks meaning, if inflation softens in the near-term it has room to step on the brakes. So, should today’s reading undershoot forecasts, this will no doubt help the pair move higher towards target.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.