Yesterday’s trade saw EUR/CAD within the range of 1.4219-1.4346. The daily high has also been the highest level since February 4th, when a high of 1.4389 was recorded. The pair closed at 1.4318, gaining 0.46% on a daily basis and extending gains from Tuesday.
At 8:50 GMT today EUR/CAD was down 0.29% for the day to trade at 1.4272. The pair touched a daily low at 1.4263 at 8:46 GMT.
Fundamentals
Euro area
Industrial output
The seasonally adjusted index of industrial production in the Euro zone probably expanded 0.2% in December compared to a month ago, following another 0.2% gain in November. If so, this would be the fourth consecutive month of production growth. Annualized output probably increased at a pace of 0.3% in December, after a 0.4% contraction in November. The index, reflecting business cycle, measures the change in overall inflation-adjusted value of output in sectors such as manufacturing, mining and utilities. In case industrial output expanded more than anticipated, this would support demand for the common currency, as this boosts the probability of a higher inflationary pressure. Eurostat is to publish the official data at 10:00 GMT.
Canada
Housing prices
Selling prices of new homes in Canada probably rose 0.1% in December compared to a month ago, following another 0.1% increase in November. If so, this would be the fifth consecutive month of gains. Prices climbed at a rate of 1.7% in November compared to November 2013, which has been the fastest annual increase since August 2013. The New Housing Price Index is a key indicator, reflecting the health of Canadian housing market. In case prices surged more than anticipated, this would be an indication of a strong demand and would, therefore, have a bullish effect on the local dollar. Statistics Canada will release the official data at 13:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4294. In case EUR/CAD manages to breach the first resistance level at 1.4370, it will probably continue up to test 1.4421. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4497.
If EUR/CAD manages to breach the first key support at 1.4243, it will probably continue to slide and test 1.4167. With this second key support broken, the movement to the downside will probably continue to 1.4116.
The mid-Pivot levels for Monday are as follows: M1 – 1.4142, M2 – 1.4205, M3 – 1.4269, M4 – 1.4332, M5 – 1.4396, M6 – 1.4459.
In weekly terms, the central pivot point is at 1.4254. The three key resistance levels are as follows: R1 – 1.4399, R2 – 1.4626, R3 – 1.4771. The three key support levels are: S1 – 1.4027, S2 – 1.3882, S3 – 1.3655.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
