EURCAD is sitting at a significant channel support making it one of the more interestingly placed Euro pairs after last night's news that the ECB may be considering negative deposit rates.

EURCAD Channel Support

EUCCAD Channel Support. Click to Enlarge EUCCAD Channel Support. Click to Enlarge

The channel support is now at the same level as the 55 day moving average lending support to the potential significance of this area.

With really obvious supports like this, trend traders often use a generous price filter, placing the stop entry order looking to get beyond the reach of professional short term traders looking to take advantage of pushing markets through these levels but often creating false breaks. The last flick below this support looks a case in point

If there is a clear break below the current support zone, a move back towards the zone around the 200 day average (green line) might be one possibility.