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EURCAD – Will 1.4000 Break?
The unambiguously dovish press conference by ECB President Mario Draghi pushed EUR/USD to fresh yearly lows with the pair now trading below the 1.2400 figure and if tomorrow’s NFPs show that the labor conditions in US remain robust then the pair could fall even further as it becomes evident that the policy divergence between the -2 economies is now becoming full force. Meanwhile tomorrow also brings Canadian employment data. The market is looking for a pullback from last months very strong 74K print, but if the number surprises to the upside for second month in row the loonie could finally catch a bid and EUR/CAD could test the 1.4000 support.
The 1.4000 level is a very strong base level in EUR/CAD representing triple bottom support if it is broken the drop could be precipitous to 1.3800. Meanwhile only a move above 1.4200 alleviates the downside bias.