Main Scenario: As long as EURCAD stays below 1.5598, the main trend will be downward. Once 1.5559 support level is breached on hourly basis, then the pair will again try to test 1.5533-1.5503 levels
Target Expectation: 1.5503
Considerations Supporting The Scenario: Euro zone inflation turned negative last month for the first time since May 2016, raising chances that the European Central Bank will have to inject yet more stimulus to generate price growth which has undershot its target for over seven years. Annual inflation in the 19 countries sharing the euro fell to minus 0.2% in August from 0.4% in July, underperforming analysts’ expectations for a reading of 0.2% and a far cry from the ECB’s target of just under 2%.
Alternative Scenario: An alternative expectation may be taken into account in case of a close above 1.5598
Alternative Target Expectation: 1.5638