Technical Bias: Bearish
Key Takeaways
Euro surged higher against the Canadian dollar recently but failed to break a critical resistance area.
EURCAD might correct lower moving ahead if Euro sellers gain control.
German IFO Business climate index is a major risk event lined for release up later today.
EURCAD upside stalled right around an important resistance area of 1.4650, which has opened the doors for a major correction in the near term.
Technical Analysis
The EURCAD pair recently managed to clear the 200 day simple moving average, and challenged a critical resistance trend line on the daily chart around 1.4650. The pair failed to break the mentioned resistance area and currently trading lower. On the downside, the first and foremost support is seen around the 200 day SMA, followed by the 38.2% Fibonacci retracement level of the last leg from the 1.3884 low to 1.4646 high. A daily close below the stated support area would put a lot of pressure on the Euro bulls which might lead to more losses towards the 1.4350 swing support zone. There is a chance of recovery in the Canadian dollar and that’s why we cannot deny a major correction in EURCAD moving ahead. EURCAD might even head towards the 100 day SMA which is sitting around the 61.8% fib retracement level. Moreover, the 50 day SMA is also around the stated level.
On the upside, the recent high of 1.4646 might act as a major support for the EURCAD pair. The pair could retest the highlighted bearish trend line if it manages to clear the last high.
German IFO Business Climate Index
Later during the London session, the German business sentiment index will be released by the CESifo Group. The forecast is slated for a minor rise from the last reading of 104.7 to 105.4. Moreover, the German IFO Current assessment is expected to rise from 110.0 to 110.4. Any miss in the result might take Euro lower in the short term.
Recommended Content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.