Recently, EUR/CAD is residing in a volatile corrective structure between 1.4730 and 1.4970. Today, EUR receives support from the economic reports including German Retail Sales report which showed a rise to 0.5% from the previous value of -0.2% and which was expected to be at 0.3%, French Consumer Spending increased to 1.0% from the previous value of 0.4% which was expected to be at 0.5%, French Prelim CPI was unchanged at 0.0%, German Unemployment Change showed an increase to 7k which was expected to decrease to -10k, CPI Flash Estimate was better than expected at 1.3% which was expected to be at 1.2%, and Core CPI Flash Estimate was also slightly better today at 1.1% which was expected to be at 1.0%. On the CAD side, today Canada’s GDP actual result was as expected at 0.2% which previously was at 0.5%, RMPI showed a decrease to -1.8% which was expected to be at -0.6% and IPPI also showed a decrease to -0.2% which was expected to be at 0.4%. Today, Canada’s economic reports have been quite negative in nature. However, CAD did not lose ground against EUR till now which signals CAD is quite powerful against EUR. If Canada comes up with better economic reports in the coming days, we might see further gains on CAD against EUR.
Now let us look at the technical chart. The price is currently trading inside the corrective range of 1.4730 to 1.4970. Currently the price is being held by dynamic resistance of 20 EMA inside the range which signals the presence of bears in the market. The market is currently in a bearish bias despite the recent corrective structure but for proper bearish pressure we will anticipate breaking below the corrective structure support of 1.4730 with a daily close and with a target towards 1.4300 support level. On the other hand, if the price breaks above 1.4970, only then the bearish bias will change to bullish.
The material has been provided by InstaForex Company – www.instaforex.com