EURCAD short into Draghi's ECB Monterey policy
This is just a recap on the EURCAD post I made here yesterday. I still like this trade set-up going into Thursday as I see more pressure ahead for the EUR. The dollar index is appreciating, partly on the back of the risk wobble (as Eamonn aptly put it earlier) , and this will weigh further on the EUR for the present. (Remember that the USD Index is considered the anti-euro index and they are inversely correlated)>
Also, the ECB must be under pressure to act/reognise the slowdown in Italy, Germany, Spain and France. Jerome Powell has hit pause, so we may see Draghi begin to adjust future policy direction.
The EURCAD part 2 post I made yesterday showed what I considered to be a good place to enter on the 1 hour pivot and 100 EMA area. Price is now in the area and stops could be placed above the 200 EMA (R1 pivot point).
