EUR/CAD: Scope for further gains remains limited at the moment – Scotiabank

EUR/CAD found firm support around 1.4150 last week. Nonetheless, upside scope remains limited, in the opinion of economists at Scotiabank.

Gains to 1.43/1.44 are the best the EUR/CAD will be able to muster

“The squeeze higher has checked the immediate downside risks for the cross but the broader undertone for the EUR remains weak and daily, weekly and monthly trend oscillators remain aligned bearishly for the EUR – suggesting that scope for EUR gains remains limited at the moment.” 

“The bounce in the cross from the base of the recent range does suggest potential for a retest of the 1.46 zone – major resistance at 1.4615 – but we rather feel that gains to the 1.43/1.44 range are perhaps the best the EUR will be able to muster (given trend oscillators).” 

“There is minor trend resistance at 1.4330 and more important channel resistance, formerly support, at 1.4405.”