EURCAD - short prophecy

EURCAD has broken out of a symmetrical triangle. Although the move wasn't explosive, it still countz.

► Negative fundamentals

The ongoing war has propelled oil above 100 and is still continuous. Other important commodities exert similar behavior. Not only that energy compoundz roughly 25% of the costs of mining, but Russia also used to export other raw materials. Europe is an importer of most materials, whereas Canada exports some stuff. This gives their currency an edge over Euro.

Interest rates differential has been negative for a long time and has increased recently as a result of BoC raising its rates. It remains a question if ECB follows at some point in the future.

► Neutral technicals

Breakout is losing momentum. It is not giving a sign of reversal and it is likely to carry on in its downward direction. There is a chance, it will revisit point-of-control. If that happens, I will be looking to short.

Good hunt!