Eurcad daily long EUR/CADOANDA:EURCADabolfazlabediEURCAD — BUY | Fundamental Outlook The bullish EURCAD thesis is based on the relative interest-rate outlook favoring the Euro, with the ECB expected to implement another rate hike in 2026 to contain persistent inflation. Meanwhile, elevated oil prices remain a significant risk, as they could strengthen the Canadian dollar. However, I believe a substantial portion of the oil-price shock may already be priced into the market, limiting its incremental bullish impact on CAD. EURCAD has been in a bearish trend for approximately four months, creating the potential for a corrective rebound or trend reversal if monetary-policy expectations continue to favor the Euro. The key consideration is the divergence between the expected monetary-policy paths of the ECB and the Bank of Canada. Risk Factors: Further increases in oil prices, additional BoC tightening, and persistent Eurozone economic or political uncertainty could undermine the bullish outlook. The trade therefore carries fundamental risk, and a reversal should not be assumed solely because of the prolonged decline.