Since mid-February the rates have consolidated in the flat range of 1.4885 - 1.5202 CAD. The euro is quite difficult to resist the Canadian dollar amid the economic downturn in the EU, despite the Canadian dollar being periodically under pressure due to the situation on the oil market or due to the trade conflict between the US and China. This periodically allows the euro to strengthen a bit, but not for a long period because oil prices are kept at a high level due to the growing tensions between Iran and the United States, as well as the situation in the Middle East as a whole.
Last week the Canadian dollar received support in connection with the abolition of duties on imports of metals to the United States for Canada and Mexico. It should also be noted that the Canadian dollar is the least affected by the economic downturn in China, as long as it does not significantly reduce the oil value. As for the macroeconomic reports on the Canadian economy, they were absent during the week. The news background from the EU also wasn't saturated. Therefore, volatility was average and depended on external factors.
Tomorrow EU elections to the European Parliament are expected, which puts pressure on the euro. The news background will become much more saturated from tomorrow because in addition to the elections, the market will receive information on Germany's GDP, the manufacturing PMI indices of business activity of Germany, France, as well as from the EU as a whole. In addition, it is expected to publish the minutes of the ECB meeting, which investors anticipate the most.
Given that macroeconomic statistics rarely support the Euro and the ECB is not going to revise its monetary policy, we suppose that the CAD is currently in a winning position and will be able to strengthen against the euro tomorrow. Therefore, the most effective course would be the deals to SELL, despite the signal of the Stochastic oscillator about the rates in the oversold zone. At the same time, most of the technical analysis tools tend towards opening short deals. Entry points can be set at the levels of 1.4885 and 1.5202.
