We are going to keep an eye on the Canadian Dollar today. The Bank of Canada’s governor is giving a speech today in New York and the text of the speech will be released at 13:35 EST.

Bank of Canada has released statements in the last few weeks that the recent strength of the Canadian Dollar may hurt Canada’s economic recovery prospects.

With this pending speech in mind, we took a look at some charts and found a favorable set up in EUR/CAD. Our chart below seems to be setting up for one of our favorite technical plays, the false break out. We will watch this chart throughout the morning to see if we can confirm a move higher in EUR/CAD (which means a lower Canadian Dollar). If so, we will go long just before the governor’s speech is released.

Stay Nimble!

Stephen Leahy
Back Bay FX Services, LLC
www.backbayfx.com

Thanks to FX Solutions and Accucharts for the below images.