EUR/CAD losses resume. The pair could tumble as low as the 1.30 level, in the view of economists at Scotiabank.

Decline risks extending significantly

“Sustained losses below the 1.38 area leaves the cross without any major sources of technical support until the March 2015 low at 1.3030.”

“Trend oscillators are aligned bearishly for the EUR across short, medium and long term DMIs, implying only limited scope for counter-trend corrections at this point. By ‘limited’ we mean EUR rebounds could perhaps extend to the 1.38/1.39 region but we do think the EUR will struggle to rebound in a significant or sustained way.” 

“1.30 looks a long way away but it is reachable in the next few months.”