Chart_16-04-20_11-59-01

EURCAD, 240 min

Draghi’s speech is scheduled for today and starts at 10 am GMT while the ECB interest rate decision is due tomorrow. Draghi is widely expected to keep monetary policy unchanged at tomorrow’s council meeting. Indeed, with officials stressing that helicopter money may be an interesting academic idea but is not under serious consideration and the ECB focused on implementing the measures already announced the central bank is seen on hold for an extended period. With growth slowing down in core countries and the Brexit referendum adding to uncertainties, hopes of further action down the line remain, even if helicopter money may be too much of a leap. For now though the ECB remains on hold and at the moment September seems the earliest for a serious policy review.

Event’s such as speeches from central bankers have a potential to move the currency markets as much as the discussions between heads of oil producing states can move the crude oil and related currencies. With Draghi’s speech coming up and oil being volatile I am focusing on EURCAD, an FX pair that could be impacted by both. The pair is trading at the lower Bollinger Bands in weekly, daily and 4h charts has driven Stochastics to the oversold territory in Weekly and 4h timeframes. This together with Draghi’s speech coming up later on today creates a chance for this market to rally higher. The nearest 4h resistance level at 1.4482 coincides with 23.6% Fib-level and EURCAD breaks above it could rally up to my sell area at 1.4609 – 1.4680, an area that coincides with the 4h Bollinger bands and the area between 50% and 61.8% Fibonacci levels.

I’m looking for sell signals in EURCAD inside my sell area between 1.4623 – 1.4680 with Target 1 at 1.4350 – 1.4400 and Target 2 at 1.4200 – 1.4242. Please remember to manage your risks and only trade these trade ideas if your analysis agrees with them. If you don’t know how to manage your trading risks professionally you are welcome join to my free webinars to learn more.


 

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action. 

EUR/USD News

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance. 

GBP/USD News

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited. 

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures