EUR/CAD: 14 year average 1.4543 vs 1.4757 range
|As written in the weekly commentary, drivers to this week's currency markets are GBP/CAD, EUR/CAD, AUD/CAD and NZD/CAD. For GBP/CAD and EUR/CAD both correlate to USD/CAD at +96% and +97%. EUR/CAD correlates to EUR/USD at -48% which means EUR/CAD and GBP/CAD transformed as USD pairs.
Without running the data, AUD/CAD and NZD/CAD also assumes Correlations at +90% to USD/CAD.
USD/CAD remains deeply oversold along with EUR/CAD, GBP/CAD, AUD/CAD and NZD/CAD. As instructed for long GBP/CAD anywhere to target 1.7230 achieved 154 pips from Sunday's open at 1.6967. EUR/CAD from 1.4762 achieved 73 pips but failed to break higher at reported 1.4835 then reversed.
Higher for EUR/CAD must break 1.4757, 1.4798, 1.4964 and 1.4968. Most vita to EUR/CAD is 1.4964 at the 5 year average. EUR/CAD broke below 1.4757 and now trades from 1.4757 to 1.4543 then 1.4442 at the 14 and 10 year averages. USD/CAD important support in comparison is located at 1.2083, the 10 year average.
The only trade strategy for USD/CAD and Other Currency/CAD is long due to massive oversold. Any drops represent falling prices into deeper oversold.
DXY from current 91.24 trades between 90.24 and 91.57. DXY for the week traded 91.43 to 90.87. DXY break above 91.57 assists to higher USD/CAD and in turn Other Currency/ CAD.
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