EURCAD: Short, medium and long-term trend oscillators are moving into bearish alignment - Scotiabank

EURCAD closed out a fifth, consecutive losing week at its lowest level in nearly 18 months as noted by the Analysts at Scotiabank. 

Key Quotes

“The cross has had a very poor few weeks—reversing strongly from 1.50+, falling below major trend support in the low 1.44s and losing long-term, retracement support at 1.4203.  As noted previously, weekly and monthly bear reversals were signaled by November’s price moves and the loss of support at 1.42 implied a drop to the 76.4% retracement at 1.3755— which looks reachable in the relative near-term.  Beyond that, there is some support around 1.35 but little, major support until the 1.30 area.”

“We are not excluding the risk of the bear move extending towards 1.30/1.35 in the next few months. Short, medium and long-term trend oscillators are slowly moving into bearish alignment, which will aid and abet the slide and limit scope for EUR counter-trend rallies.”