Fundamental analysis of EUR/CAD for December 8, 2017

EUR/CAD has been quite volatile recently showing impulsive bearish pressure after breaking above 1.52, taking the price all the way down. Currently, EUR is quite positive with the gains against CAD due to recent worse economic reports published in Canada. Today, EUR German Trade Balance report is going to be published which is expected to increase to 22.0B from the previous figure of 21.8B. Besides, the French Government Budget Balance is expected to be have a smaller deficit than the previous figure of -76.3B and the French Industrial Production report is expected to be negative at -0.1% from the previous value of 0.6%. On the CAD side, today the Housing Starts report is going to be published which is expected to decrease to 214k from the previous figure of 223k and the Capacity Utilization Rate is expected to have a slight decrease in value to 84.8% from the previous value of 85.0%. As of the current scenario, both currencies in the pair have economic reports to be published today which are expected to have worse outcome. EUR has been struggling with the German issue for which the market sentiment is not quite in favor of EUR whereas CAD is expected to provide mixed economic reports which is likely to help CAD extend gains against EUR in the coming days.

Now let us look at the technical view. The price has been quite bearish after a false break above 1.52 resistance area. Currently, the price is residing below 1.52 price area which is expected to push it further down towards 1.4860 support area in the coming days. The bears are still quite strong in this pair, and as the price remains below the 1.52 level, the bearish 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 8, 2017