EUR/CAD comes with high volatility

FXstreet.com (London) - EUR/CAD was a landslide event on Friday and has since completed three waves and is bid on the fourth through 1.4005.

EUR/CAD opened on a gap and met strong supply to below 1.3960 but has since recovered on demand for euros on a weak commodity currency play also back through the 1.40 handle. Research teams at TD Securities said the pair has spent the last few weeks grinding back against former trend support (off the May low) and while the move up has enjoyed strong, underlying support, they have not been especially impressed by the rebound, which looks to be a retest of the August peaks. “Heavy selling Friday may put a short-term (at least) seal on the EUR rally (marginal bearish “engulfing” signal on the daily chart), especially with the reversal coming so close to the prior high”.

EUR/CAD to regain 1.4100 handle on rebound?

The research teams at TD Securities also said, “We still rather think that the 1.41 area is a block on significant progress higher from a broader sense. Loss of short-term channel support (1.3962 today) would be a short-term negative for the EUR at least