EURCAD is a cross-currency pair showing the value of the Euro against the Canadian Dollar.
The simple idea is:
EUR strengthens relative to CAD → EURCAD rises 📈
CAD strengthens relative to EUR → EURCAD falls 📉
The major factors I watch are:
🇪🇺 EUR: ECB interest rates, Eurozone inflation, GDP, employment and economic expectations.
🇨🇦 CAD: Bank of Canada (BoC), Canadian inflation, employment, GDP and economic expectations.
🛢️ Oil: Because Canada is a major oil exporter, crude oil movements can influence CAD and therefore EURCAD.
💰 Interest-rate expectations: The relative outlook between the ECB and BoC is one of the key drivers of the pair.
📊 How I trade it: I first determine which currency is stronger, then use higher-timeframe structure, liquidity and price action to find the trade direction and entry.
So rather than looking at EURCAD as just another chart, think of it as a battle between EUR strength and CAD strength.
EUR strength + CAD weakness = look for EURCAD buys.
EUR weakness + CAD strength = look for EURCAD sells.
