EUR/CAD needs to crack on above 1.3755 in order to rally – Scotiabank

EUR/CAD capped in mid-1.37s. A break above this region is needed to see a race higher, economists at Scotiabank report.

EUR/CAD remains under technical pressure

“The alignment of trend oscillator signals, in particular, is a problem for the EUR; the intraday, daily and weekly signals all suggest deeply entrenched bear momentum on the cross which will limit the EUR’s ability to recover – as the block at 1.3755 reflects.” 

“The EUR is finding support in the 1.3395/00 zone at least but downside risks remain for this cross towards 1.31/1.32.”

“The one issue we can note which suggests weakening bear pressure on the EUR is the narrowing, downward-sloping range that has developed since March. Still, the EUR needs to trade above 1.3715/20 to give this some validity and clearly needs to crack on above 1.3755 in order to rally.”