EUR/USD
: The EUR is still seeking some direction having just bounced off of support of the 50 day MA. In the daily EUR Chart below we once again are looking to our Fibonacci levels in search of some key handles.
I believe if we surpass 1.50 as a non-event after having tested that level and broken through it, then entering a small Long EUR position may be in order. If we break the Fibo 76.4% level currently at 1.5162 then I would look to increase the Long EUR position.
On the other hand should a EUR candle be contained entirely below the 50 day Moving Average then a Short EUR position could easily be entered into with stops just above the 50 day MA.
USD/CAD
We may continue to see the CAD strengthen against the greenback. Up until a week and half ago the Loonie was on course for dollar parity. If you recall the BOC came out sharply against its own currency essentially causing the CAD to tank.The daily CAD chart below shows that we have bumped along the 1.0850 handle 7 times since the end of May, and most recently just a couple days ago. If it were not for fear of more BOC market interference this would be a great time to enter a Long CAD position with a stop at CAD support of 1.0850. Additionally, if we see CHF break or hold dollar parity that will bolster CAD strength as it rides the tailwinds since the Canadian economy is substantially less soft than the U.S. If Oil continues to strengthen, that will also add further support to CAD's continuing firming.
