Forex Market: EUR/CAD daily trading forecast

Friday’s trade saw EUR/CAD within the range of 1.4048-1.4135. The pair closed at 1.4091, gaining 0.09% on a daily basis.

At 7:08 GMT today EUR/CAD was up 0.03% for the day to trade at 1.4097. The pair touched a daily high at 1.4108 at 1:40 GMT.

Fundamental view

Euro zone

Confidence among investors in the Euro zone was probably lower during the current month, with the corresponding index coming in at a reading of 2.0. In August it stood at 2.7, or the lowest level since August 2013. The index is based on results from the SENTIX survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 800 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. Readings above zero indicate that respondents were predominantly optimistic, while readings below zero signify pessimism. Lower than expected readings would mount selling pressure on the common currency. The official result is due out at 8:30 GMT.

Canada

The number of building permits in Canada probably declined 10.0% in July compared to a month ago, according to the median estimate by experts. In June permits, issued by the government, were 13.5% more, or the largest rate of increase since July 2013. Building permits, as an indicator, provide information regarding demand in Canada’s housing market. In case the number of permits fell more than anticipated, this might have a bearish effect on the Canadian dollar. Statistics Canada is to release its monthly report at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4091. In case EUR/CAD manages to breach the first resistance level at 1.4135, it will probably continue up to test 1.4178. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4222.

If EUR/CAD manages to breach the first key support at 1.4048, it will probably continue to slide and test 1.4004. With this second key support broken, the movement to the downside will probably continue to 1.3961.

The mid-Pivot levels for today are as follows: M1 – 1.3983, M2 – 1.4026, M3 – 1.4070, M4 – 1.4113, M5 – 1.4157, M6 – 1.4200.

In weekly terms, the central pivot point is at 1.4160. The three key resistance levels are as follows: R1 – 1.4291, R2 – 1.4490, R3 – 1.4621. The three key support levels are: S1 – 1.3961, S2 – 1.3830, S3 – 1.3631.