Published On: Mon, Feb 27th, 2017

EURCAD – Euro To Capitalize Towards 1.3900 Vs Canadian Dollar

InstaForex

euro EURUSD eurjpy eurcad

Key Points

  • The Euro recently fell towards 1.3825 against the Canadian Dollar where it found support.
  • There is a crucial bearish trend line with resistance at 1.3900 on the hourly chart of EURCAD, which is preventing an upside break.
  • This past week in Canada, the Consumer Price Index (CPI) for Jan 2017 was released by the Statistics Canada.
  • The result was better than the forecast, as there was a rise of 2.1% in Jan 2017 (YoY), more than the forecast of 1.6%.

EURCAD Technical Analysis

The Euro faced a lot of offers against the Canadian dollar recently, resulting in a decline towards 1.3825 from there the EURCAD pair recovered. The pair is now above the 23.6% Fib retracement level of the last decline from the 1.3918 high to 1.3825 low.

EURCAD Technical Analysis

However, the pair is struggling to close above the 21 simple moving average and the 50% Fib retracement level of the last decline from the 1.3918 high to 1.3825 low. Moreover, there is a crucial bearish trend line with resistance at 1.3900 on the hourly chart.

So, there is a chance of the EURCAD pair moving higher, but it is likely to face sellers near the 1.3900 handle.

Canadian Consumer Price Index

This past Friday, the Canadian Consumer Price Index (CPI) for Jan 2017 was released by the Statistics Canada. The market was expecting the Canadian CPI to increase by 1.6% in Jan 2017, compared with the same month a year ago.

The outcome was better than the forecast, as there was a rise of 2.1% in Jan 2017 (YoY). The monthly change was also better with a rise of 0.9%, compared with the 0.3% forecast. The report added that the “transportation index rose on a year-over-year basis, up 6.3% in January after a 3.0% gain in December. The gain in January was led by gasoline prices, which posted their largest increase since September 2011, up 20.6% in the 12 months to January”.

Overall, the market sentiment is favoring a minor upside in EURCAD with resistance at 1.3900 and support at 1.3845.

FXTimes

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>