Usually, when the ECB cuts rates, the EURUSD and its cross rate cousins take a bit of a tumble as investors in search of yield look to other currency pairs. However, this was not the case as “buy the rumor sell the fact” sparked a Euro rally across the board. EURCAD was a benefactor and is poised to break out of its 1400 pip range. Ideally, I would look for a pull back to the daily trend line as these gains are digested by the market. However, buying a break of the November 21st high of 1.6229 to target the 2005 highs of 1.6399 and 1.6551 respectively would be considered.
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