CAD weakness on oil pullback impact for EURCAD
Been watching the CAD weakness lately, seems to be a combination of factors but the recent dip in oil prices isn't helping. That's got me thinking about $EURCAD. It's hovering around 1.60489, consolidating a bit after its move up. If we see a sustained pullback in crude, that could keep CAD on the back foot, potentially pushing $EURCAD higher. On my watchlist, I'm looking for a clear break above that 1.60673 daily high. Conversely, if oil stabilizes or bounces, CAD could find some footing and we might see a retrace towards 1.60367. Not jumping in yet, but the potential for further upside in EURCAD is definitely there if the macro narrative aligns.
Agree, a sustained crude pullback definitely puts pressure on CAD. Would you be looking for a retest of 1.62 before considering a long, or earlier entry if the oil dip accelerates?