EURCAD shorts revisited.
The EURCAD short trade setup that I highlighted on Monday has had some more fuel added to it's fire. There was a whole swathe of Eurozone PMI's all showing , if not all showing weakness, then a continued downward trend. If you check out the market wrap that Justin completed yesterday for the European session you can see the readings there. The graphs below showing the PMI reading and the GDP data too highlights this downward inclination.
The Eurozone composite PMI reading below helps make it even clearer.
The Euro looks sets to keep sliding. What has started as a manufacturing and export led slowdown (some blame being placed on Us-China trade wars), has moved over into services and spending decisions. The PMI's fell among French and Italian service provides and retail sales have not offered much to cheerful about. Despite the talk about retail sales being distorted by November's Black Friday, the combined sales data for November and December was still down on last year.
Oil struggled to get past the 100 EMA on the daily chart and the pivot point on the weekly chart. I would like to see Oil break above those two technical spots to give much hope of a rally. Some more oil strength would be helpful here in supporting further CAD strength and more movement towards the EURCAD target at 1.4860.
