Analysis Picks For Eur/ Cad

This morning we noticed some gross underperformance in the cross, with the Canadian Dollar price action standing out as Cad rallied across the board, while all other currencies were showing weaker against the USD. With the market dropping sharply in Asia to already exceed its daily ATR, and with no decent fundamental catalyst for the move, we were quite content on kicking off the year with a long position on the cross which was well oversold on the hourly chart. The downside risk initially seemed to be very limited, and with the other Euro/Commodity crosses showing evidence of basing, we initiated the trade. From here, a break back above Friday’s 1.3380 highs will be required to officially relieve short-term downside pressures, but we have already taken advantage of the most recent bounce into the money and have gone ahead and booked some profits while also eliminating any risk by moving our stop-loss to break-even. POSITION: LONG @1.3192 FOR AN OPEN OBJECTIVE; BOOKED PROFIT ON HALF @1.3250; REVISED STOP @1.3192.