Forex Market: EUR/CAD daily forecast

During Friday’s trading session EUR/CAD traded within the range of 1.4681-1.4742 and closed at 1.4700.

At 6:48 GMT today EUR/CAD was losing 0.01% for the day to trade at 1.4698. The pair touched a daily low at 1.4681 at 6:20 GMT.

Fundamental view

The final annualized reading of the harmonized index of consumer prices (HICP) in the Euro zone probably rose 0.5 % in May, matching the preliminary reading estimated on June 3rd. 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 continue easing monetary policy, while a 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 1.4734, it will probably continue up to test 1.4769. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4795.

If EUR/CAD manages to breach the first key support at 1.4673, it will probably continue to slide and test 1.4647. With this second key support broken, the movement to the downside will probably continue to 1.4612.