EURCAD 1.48 Support Holding, Important Data Released This Week

EURCAD had a rough start to last week, dropping 300 pips before recovering on Thursday and Friday. Canadian strength from the interest rate increase and Euro weakness from weak German PMI data fueled the move to the downside. However, support held strong, with a 60+ pip bullish candle immediately after 1.48 was broken. Looking ahead to this week, we have German employment change and a speech from Gov Poloz on Tuesday. Wednesday will bring us CPI data from Europe and and GDP data from Canada a few hours later. Prepare for lots of volatility in the middle of this week for this pair. I predict 1.48 to continue holding if euro data is positive, and possibly retest 1.51 by Thursday. However, If we see more Euro weakness combined with strong data from Canada, a clean break of 1.48 could send us all the way down to 1.45, our next major support.