Chart of the Day Bullish EURCAD
EUR: Eurozone economic growth steadied; Germany staved off recession: The second reading of Eurozone 3Q GDP growth was unrevised from its first estimate at 0.2% QOQ (1Q: +0.2%) and was unchanged from 2Q growth, leaving the YOY expansion at a steady 1.2% (2Q: +1.2%). Notably, Germany staved off technical recession to deliver a surprise 0.1% QOQ gain (1Q: -0.2% revised), led by consumer and government spending. The expansion was welcoming but the marginal gain nonetheless reflects the economy’s ongoing weakness, particularly its industrial sector.
CAD: was able to recover from recent lows, after a supportive day of developments for the Loonie on Thursday. US House Speaker Pelosi said progress was being made with the USMCA trade agreement. On the data front, Canada new home prices rose more than expected. Looking ahead, key standouts on the Friday calendar include a Bank of Canada Lane speech, Canada foreign securities purchases, and US reads in the form of retail sales, empire manufacturing, industrial production and business inventories.
From a technical and trading perspective, EURCAD appears to be carving out a meaningful low, the EURO found a bid across the board yesterday as Germany managed to stave off recession fears, giving relief to the single currency. The consecutive closes above the near term volume weighted average price, provides conviction for another leg of upside in an AB=CD scenario that will prices test an equidistant swing objective and the monthly R1 at 1.48, as such I will venture long though yesterday's high with a stop below today's low.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% and 71% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!