EURCAD emerges as an hedge against war.

3 мар. 2022 г.

No matter what you are currently trading based on technicals and chart patterns, the fundamental component of the war in Ukraine is something you can't ignore. Protecting your trading capital against the worst is very important, especially if you hold risk-on assets or you trade with an account based on a risk-on European currency (EUR, SEK, HUF, PLN etc.). You can either and very straightforwardly go short on EURJPY or EURCHF, or see if other pairs can be interesting. EURCAD is one of them, as the Canadian dollar is correlated to oil and is geographically detached from the conflict, it's been doing extremely well, even against risk-off currencies. EURAUD is also a pair that has seen a precipitous decline, for the same reasons. Shorting EURCAD will also result in very low swap fees, lower than EURCHF for example.
The yellow line on the chart is the next support level, which might see some bumps, so keep an eye on it.
Consider a strategy of diversifying your hedges in these very uncertain times. Good luck!