EUR/CAD might be in for a retest of the broken neckline and support at the 1.5000 major psychological level, with the ECB set to ease in today’s rate statement. Stochastic is already pointing down, which means that bears are in control at the moment.
The 38.2% Fibonacci retracement level already appears to be holding as resistance but the extra volatility in today’s economic event might still lead to at test of the falling trend line.
Shorting at the 1.5000 mark with a stop above the 61.8% Fibonacci retracement level and a target of new lows around the 1.4400 area could lead to a good return on risk for this trade.
By Kate Curtis from Trader’s Way