Likely so, but not before consolidation takes place.  The cross currency has already fallen by about 1.6% over the last two sessions, and is now finding technical support just above the 1.3025 figure.  Incidentally, the EURCAD pair tested the 1.3025 barrier back in the beginning of the month – only to fail to break below it and correct higher.  The pair currently trades at 1.3040.

Technical indicators are hinting at the same scenario this time around, with the stochastic oscillator already falling through to oversold signals.  As a result, we anticipate a slight correction back to 1.3060-1.3075.  Now, this level is key due to the rising trendline resistance from 1.2883-1.3021 – placing the corresponding resistance barrier at 1.3060-1.3075.  Should the barrier hold, price action will only likely consolidate at this level, setting the pair up for another wave of declines – this time through support at 1.3000 and 1.2950.

This likely scenario is additionally dependent on fundamental drivers in Iran, which are likely to warrant a response by Western powers within the next 24 hours – either complicating or clarifying the technical outlook.

Any binary options on the pair should be taken at an extended period of time, shifting to a weekly time frame rather than intraday.  With volatility expected to die down, any potential intraday moves may fall to the wayside till tomorrow.

More on the Canadian dollar - Iran Unveils Nuclear Activities, Cuts European Exports