There seems to be some suspension on the EUR/CAD pair. The daily chart shows that consolidation is in progress after a strong downward movement. It seems that the natural next move should generate a correction in the downward trend. Looking at the chart, it seems that it should reach a clear resistance in the region of 1.4770, i.e. the level of previous lows. Currently, we have a rather weak sentiment on the Euro. On Friday, we had two readings on retail sales in Canada.

EURCAD Daily

Both of these readings were definitely below the forecasts. This did little to help the European currency, which was unable to generate a larger rebound. This Thursday, when the ECB meets and decides on interest rates, will be crucial. There will also be a press conference of the ECB. Investors fear rhetoric that could lead to a serious weakening of the single currency. However, if this does not happen, it is possible that the chart will show an upward correction after a downward wave.


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