The EURCAD is testing long term multi year trend line
The EURCAD is testing a trend line which has been in existence since 2012. The reason this is significant is for a couple reasons:
The ECB meets tomorrow, and the risk of the ECB not being as accommodating as the market is looking for is a strong possibility. In the event the ECB disappoints the market, we could see a bounce in the EUR across the board.
The US may ease Iranian sanctions. This could lead to a continued move lower in crude oil, resulting in further CAD weakness from a correlation standpoint.
If the ECB fails to meet market expectations, the stock market could come under pressure which tends to allow for commodity currencies (such as the CAD) to be pressured.
The EURCAD is hitting this trend line with a very divergent RSI, which could signal a bounce if it happens. On the other hand, a break of the 1.4400 level could lead to a move to 1.4000 rather quickly.