Trying EURCAD lower here.
We seem to be forming a bearish flag on the chart.
Narrative seems to still support a move to the downside, the recent rise has been due to the ECB being more resolute on hiking rates than the market expected but i think with inflation continuing to come off fairly strongly and EU economic data still coming in worse than expected we should see people continue to take out long EUR trades. CAD should still benefit from a hawkish BoC and a strong economy to back it up at the moment.
rate differentials are continuing to move lower which should help.
sentiment is moving lower still while positioning is a little long on the pair.
Not trading/investment advise, feedback welcome!
We seem to be forming a bearish flag on the chart.
Narrative seems to still support a move to the downside, the recent rise has been due to the ECB being more resolute on hiking rates than the market expected but i think with inflation continuing to come off fairly strongly and EU economic data still coming in worse than expected we should see people continue to take out long EUR trades. CAD should still benefit from a hawkish BoC and a strong economy to back it up at the moment.
rate differentials are continuing to move lower which should help.
sentiment is moving lower still while positioning is a little long on the pair.
Not trading/investment advise, feedback welcome!