Forex Market: EUR/CAD daily forecast

During yesterday’s trading session EUR/CAD traded within the range of 1.5006-1.5145 and closed at 1.5050.

At 7:17 GMT today EUR/CAD was losing 0.06% for the day to trade at 1.5042. The pair touched a daily low at 1.5027 at 2:30 GMT.

Fundamental view

Confidence among investors in the Euro zone probably improved during the current month, with the corresponding index coming in at a reading of 14.2. In March it stood at 13.9. The index is based on results from the SENTIX survey, one of the most prominent surveys, reflecting investors opinion in Germany. It encompasses 2 400 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. The value of the index is evaluated, as the number of investors projecting a surge in a given market is subtracted from the number of those projecting a drop and the resulting difference is divided by the total number of respondents. Higher than expected readings would be supportive for the euro. The official result is expected at 9:30 GMT.

At 15:30 GMT the Bank of Canada will publish its Business Outlook Survey. The latter represents a summary of interviews conducted by the banks regional offices with the senior management of about 100 business entities, selected in accordance with the composition of nations Gross Domestic Product. The major goal is to reflect the perspectives of these businesses on topics of key interest to the Bank of Canada, including demand and capacity pressures, as well as companies forward-looking views on economic activity. The survey encompasses opinions expressed by the respondents, which do not necessarily come in consonance with banks view or policy.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/CAD manages to breach the first resistance level at 1.5128, it will probably continue up to test 1.5206. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5267.

If EUR/CAD manages to breach the first key support at 1.4989, it will probably continue to slide and test 1.4928. With this second key support broken, the movement to the downside will probably continue to 1.4850.