EUR/CAD under pressure below 1.58 post ECB's Coeuré comment

• Poloz to speak on Tuesday at 14.30 GMT.
• Eurozone CPI on Friday at 10.00 GMT.

The EUR/CAD is trading at around 1.5780 virtually unchanged as the US Session is starting on Monday. 

The EUR/CAD lost more than 360 pips last week after attempting to break the 2-year high at 1.6100. The daily RSI has left the overbought territory and is now around 60.

EUR/CAD daily chart

Coming up on Wednesday is Mario Draghi’s speech at the Institute for Monetary and Financial Stability at 8.00 GMT, soon followed by ECB’s Praet speech at 8.45 GMT and ECB’s Coeuré’s speech at 16.15. The inflation numbers are eagerly awaited on Friday with the Eurozone final CPI. 

Earlier on Monday, ECB member Coeure crossed the wire saying that rates will remain at “very low levels” and that the end of the Quantitative Easing has not been debated yet. The comment doesn’t really come as a surprise however it reinforces the dovish sentiment on the Euro.

It is worth mentioning that the ECB, last week, dropped the easing bias but Draghi was cautious in the press conference by underplaying the inflation and stressing that the economic outlook hasn’t changed. 

Mr. Poloz from the Bank of Canada is set to speak on Tuesday at 14.30 GMT where he will discuss the Labor market and answer questions from the audience. Canadian macro news are slated on Thursday at 12.30 GMT with ADP employment change in February; and Friday at 12.30 GMT with January’s Manufacturing Sales

The EUR/CAD is now trading inside last Friday range. In the European session, it attempted to break the 23.6 % Fibonacci retracement without success. It I now trading about 50 pips above its 4-hour 100-period simple moving average. Support is seen at the low of last week, 1.5756 followed by the 1.5700 figure and then 1.5600 figure with the 38.2% Fibonacci retracement. To the upside immediate resistance is seen at 1.5815 with the 23.6% Fibonacci retracement, followed by the former congestion zone at 1.5900 figure. Further up, the 1.6000 psychological level should also provide resistance. 

EUR/CAD 4-hour chart