EUR/CAD is currently residing inside a corrective volatile structure on the way to retest the 1.4730 level as resistance. EUR has been quite stronger due to positive economic reports published recently. Today EUR French Consumer Spending was published with a less deficit at -0.8% from the previous value of -0.9% which did not meet the expected result at -0.3%, French Prelim CPI was published with increased figure at -0.3% from previous value of 0.0% which was expected to increase more to -0.4%, Spanish Flash CPI was published with an unchanged value at 1.5% and Spanish Flash GDP was published as expected at 0.9% which previously was at 0.8%. Alongside these economic events, German Prelim CPI is yet to be published today which is expected to be unchanged at 0.2% and Italian 10-y Bond Auction report is also going to be published which previously was at 2.16|1.3. On the other hand, CAD GDP report is going to be published today which is expected to be unchanged at 0.2%.
To sum up, EUR is currently showing some gains over CAD today due to mixed economic reports which are found mostly in favor of EUR. On the other hand, CAD GDP report is a quite high impact report to increase the volatility in the market. If CAD shows better GDP report today further gain on the CAD side is expected in the coming days.
Now let us look at the technical view after the break below 1.4730 support level recently the price is now on the way to retest the level as resistance before continuing its bearish trend with a target towards 1.4290 support level. As the price is currently being held by the dynamic level 20 EMA as well the bearish pressure can be still observed in the market. A daily close below 1.4730 will ensure the further bearish pressure in this pair for the future.
The material has been provided by InstaForex Company – www.instaforex.com