Forex Market: EUR/CAD daily outlook

During Friday’s trading session EUR/CAD traded within the range of 1.5079-1.5232 and closed at 1.5209.

At 7:43 GMT today EUR/CAD was gaining 0.05% for the day to trade at 1.5216. The pair touched a daily high at 1.5230 during the early phase of Asian trade.

Fundamental view

Euro zone’s preliminary annualized index of consumer prices, evaluated in accordance with Eurostat’s harmonized methodology, probably slowed down to 0.6% in March from 0.7% in February. The rate would still remain quite far from European Central Bank’s inflation target of 2%, which may prompt the central bank to introduce additional measures at its upcoming policy meeting later in the week. The official data is expected at 9:00 GMT. In case annualized consumer prices slow down more than projected, this would have a bearish effect upon the euro.

Meanwhile, Canadas Gross Domestic Product probably expanded 0.4% during January compared to December, according to the median estimate by experts, as in December compared to November the GDP figure contracted 0.5%. Annualized GDP, on the other hand, advanced 2.3% in December. The official figure is to be announced at 12:30 GMT. A faster than expected pace of economic growth would certainly heighten the appeal of the Canadian currency.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/CAD manages to breach the first resistance level at 1.5268, it will probably continue up to test 1.5326. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5421.

If EUR/CAD manages to breach the first key support at 1.5115, it will probably continue to slide and test 1.5020. With this second key support broken, the movement to the downside will probably continue to 1.4962.