06/15/2021
We take a look at EURCAD. It bottomed towards the end of APRIL and since then it has been in a consolidating pattern.
FX Risk has a correlation to other assets. CAD/Oil is strong. Oil prices have been climbing, as have equities and other commodities, yet, FX has been caught in a LOW VOL environment.
Charts in RISK assets (equities, commodities) seem a bit saturated. A correction in those markets could inject much needed volatility in FX.
Charts are suggesting that a price adjustment in RISK assets is near, not a certainty, but this offers us a FRAMEWORK to look for SET UPS that have a RISK OFF tilt to them, like EURCAD.