Europ Cross Pick 07.09.10
Following up with the short EUR/CAD recommendation from earlier this week, the exchange rate pared the advance from the previous week and slipped to a low 1.3015 following the jump in Canadian employment, and the pair looks poised to cross back below the 50-Day SMA at 1.2917 as the near-term rally tapers off. As a result, I will look to maintain the position going into the weekend, but will pull down the stop to cost to the 10-Day SMA at 1.3132 to lock-in some profits. As the economic outlook for Canada improves, price action may continue to trend lower over the following week, and the Bank of Canada may see scope to normalize policy further in the second-half of the year as the recovery gathers pace.
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