EUR/CAD – Waiting For A Breakout
- EUR/CAD in consolidation
- Symmetrical Triangle pattern in EUR/CAD (H4)
Chart 1: EUR/CAD H4 chart
Euro has been trading weakly against the Canadian dollar ever since the Bank of Canada cut back on quantitative easing last month amid the strong economic growth in Canada that surpassed the central bank’s expectation. Adding on to the weakness, the European Central Bank (ECB) hinted last month at a potential increase in quantitative easing at their next meeting in June.
At the moment, the weakness in EUR/CAD has started to stagnate around the 1.47 handle, forming a Symmetrical Triangle pattern. One reason is due to the recent release of the poor Canadian employment data as a result of the month long lockdown in Ontario Canada, leading to the weakening of the Canadian dollar. Another reason is due to the easing of COVID restrictions across Europe amid good progress in the vaccination programme, leading to the strengthening of euro. Look for trade opportunities if EUR/CAD breaks out of the Symmetrical Triangle.
Symmetrical Triangle pattern for EUR/CAD (H4)
Buy Stop Order at 1.47700
Sell Stop Order at 1.46400
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