EURCAD - LONG POSITION

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CFTC Speculative Net Positions against the Dollar are giving a long bias for both EUR and CAD, but a bigger one for the EUR (0.547 vs 0.410), and that disadvantage on the CAD is even bigger because of falling Oil prices due to geopolitical factors. Bank valuation on this currency pair sits at 1.4320-1.4350 for the next three months, which means that it is quite undervalued at this moment. 25 Delta Risk Reversals for 1 month expiry options shows that the Euro is starting to bite back at the dollar, reducing the diferential between EUR/USD calls and puts since Asia. And because of what we mentioned before about Oil , the loonie is struggling to show its teeth against the dollar, and it has been like that since the eighth, when Puts started to be on a really high demand and volatility rose, increasing even more the swings on the price.

Technicals: Break of the trend, Divergence on the RSI.

EURCAD
Trade geschlossen: Ziel wurde erreicht
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