Forex Market: EUR/CAD daily forecast

During yesterday’s trading session EUR/CAD traded within the range of 1.5116-1.5293 and closed at 1.5132.

At 7:52 GMT today EUR/CAD was gaining 0.07% for the day to trade at 1.5130. The pair touched a daily high at 1.5140 at 6:50 GMT.

Fundamental view

Canada

Canada’s Gross Domestic Product probably expanded 0.2% during February compared to January, according to the median estimate by experts, as in the previous month, the GDP figure rose by 0.5%. Annualized GDP, on the other hand, advanced 2.5% in January and is expected to have remained intact in February. The official figures are to be announced at 12:30 GMT.

A faster than expected pace of economic growth would certainly heighten the appeal of the Canadian currency.

Euro zone

The flash (preliminary) reading of the harmonized index of consumer prices (HICP) in the Euro zone probably rose 0.8% in April, from a final reading of 0.5% in the previous month, according to the median estimate by experts. The final reading, which was posted in March, was the weakest since October 2009. The HICP is used to measure and compare inflation between Member States. It is used for further evaluation of inflation, according to Art . 121 of the Amsterdam’s Agreement and directives of the European Central Bank to achieve price stability and the implementation of monetary policy. HICP is calculated based on international harmonized standards adopted by Member States. This is the percentage change compared to the corresponding month of the previous year.

Eurostat is scheduled to release the official report at 09:00 GMT. A weaker-than-expected reading may prompt the ECB to ease monetary policy in order to avoid risks of deflation. However, higher-than-expected reading will probably relieve pressure on central bank’s officials and they will not need to take imminent actions.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/CAD manages to breach the first resistance level at 1.5245, it will probably continue up to test 1.5357. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5422.

If EUR/CAD manages to breach the first key support at 1.5068, it will probably continue to slide and test 1.5003. With this second key support broken, the movement to the downside will probably continue to 1.4891.