Fundamental Analysis of EUR/CAD for December 1, 2017

EUR/CAD has been impulsively bullish the gains recently breaking above 1.5220 resistance area and retested it for further bullish pressure in the coming days. EUR has been quite positive with the economic reports and events recently which lead the currency to gain momentum over CAD despite the positive economic results this week. Today EUR Spanish Manufacturing PMI report is going to be published which is expected to increase to 56.6 from the previous figure of 55.8, Italian Manufacturing PMI is expected to increase to 58.4 from the previous figure of 57.8, French Final Manufacturing PMI is expected to be unchanged at 57.5, German Manufacturing PMI is expected to be unchanged at 62.5 and Final Manufacturing PMI report is also expected to be unchanged at 60.0. On the CAD side, today there are several high impact economic reports which are expected to inject a good amount of volatility in the market and may lead to gains on the CAD side. Today CAD Employment Change report is going to be published which is expected to decrease to 10.2k from the previous figure of 35.3k, GDP is expected to be positive at 0.1% from the previous negative value of -0.1%, Unemployment Rate is expected to decrease to 6.2% from the previous value of 6.3% and Manufacturing PMI report is expected to show an increase from the previous figure of 54.3. As of the current scenario, forecasts of the CAD economic reports are quite mixed in nature whereas any positive economic report of CAD is expected to lead to further gains over EUR for a certain period. Overall, EUR is expected to gain further on the long-term basis.

Now let us look at the technical view, the price is currently residing above 1.5340 price level which is expected to retrace towards 1.5220 support area before it shows some progress higher with the target towards 1.5500 resistance area in the coming days. As the price remains above 1.5220 with a daily close the bullish bias is expected to continue further.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Fundamental Analysis of EUR/CAD for December 1, 2017