EURCAD Forecast And Technical Analysis
Donald Trump on Friday announced the US would be removing metal tariffs on Canada and Mexico, clearing a major hurdle for a new North American trade agreement.
The announcement that Mexico and Canada would no longer face US tariffs of 25% on steel and 10% on aluminium, which were first announced in March 2018, came after Trump spoke with Canadian Prime Minister Justin Trudeau.
Mexico and Canada agreed to remove all retaliatory tariffs following the adjustment, according to the Associated Press, which was set to take effect within 48 hours.
This news boosted Canadian Dollar against all currencies.
Next week’s economic calendar in Canada will be low on events. Retail sales data on Wednesday, May 22 is the most relevant, with a 0.8 % gain expected.
This week it was stronger home sales and manufacturing data; last week it was record job growth and a surge in housing starts. We can expect the trend will continue next week with March’s retail sales.
On the other side, The BoC highlighted potential escalation of trade conflicts as a key economic risk, and in turn risk to the stability of the financial system. However, the Canadian Dollar is not the only currency which can be infected by the U.S – China trade wars.
If Core Retail sales data comes above the expectations on Wednesday as we predict, we can see a further drop on EURCAD pair.
On the Smaller charts:
The pair ended the week at 1.50200 below EMA50, SMA100. Potential pullbacks towards 1.50600 can be used as a selling opportunity. – We have an emerging pattern and I will share it later –
An H4 closing below 1.49820 would send the pair towards 1.49520 and 1.49280. A bullish Cypher pattern at D 1.49280 can be used a buying opportunity for a minor retracement.
It is too early to speak about, however, we can see the pair’s printing a huge bearish triangle pattern on the daily chart.
Breakout of 1.49000 support will change the game longterm. We will just keep it in our minds and focus on near term trade opportunities.
I will send the entry notification as soon as one of the patterns becomes validated.
We have USDCAD, GBPCAD and CADJPY trade setups based on harmonic and breakout patterns. I will publish them before London Opening.
VERIFIED ACCOUNT AND SETUP RESULTS
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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money
EURCAD: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility