EUR/CAD remains range-bound above the mid/upper 1.41 zone that has held since late last year. Economists at Scotiabank note that the undertone remains weak.

EUR/CAD needs to make a bit more downside progress sooner rather than later

“The EUR’s inability to recover much – or any – real ground plus the bearish alignment of the DMI oscillators on the daily, weekly and monthly studies maintains our focus on the downside risks facing the cross.”

“The cross could drop to the 1.38-1.40 range in the next few months.”

“We see resistance at 1.4435 (bear channel support-turned-resistance) and (stronger at) 1.4615.” 

“Choppy trading in the past three weeks rather suggests that, despite our generally bearish leanings here, the cross needs to make a bit more downside progress sooner rather than later, otherwise the risk of some back-tracking of the Dec slide in the cross will rise.”