Forex Market: EUR/CAD daily trading forecast

During Friday’s trading session EUR/CAD traded within the range of 1.5195-1.5238 and closed at 1.5226.

At 09:25 GMT today EUR/CAD was gaining 0.08% for the day to trade at 1.5238. The pair touched a daily high at 1.5246 at 09:04 GMT, breaching the first resistance level.

Fundamental view

Euro zone

Consumer confidence in the euro zone probably improved to -9.2 in April, from -9.3 in the previous month, according to the median estimate by experts. The index of economic sentiment or economic confidence is an indicator that consists of five major components, reflecting the mood in various economic sectors. They are presented with different weights in the composite index, and are the following: industrial confidence, confidence in the services sector, consumer confidence, confidence in the construction sector and confidence in the sector of retail sales. Indices of different types of trust are seasonally adjusted balances, generated from the responses of a number of issues directly related to the sector.

The European Commission provides preliminary data on consumer confidence two weeks before the final evaluation. It will release official data at 14:00 GMT tomorrow. A higher than expected reading will provide support for the 18-nation common currency.

Canada

Wholesale sales in Canada probably increased by 0.8% in February, following a 0.8% gain in the previous month, according to the median analyst estimate.

The study measures monthly sales of Canadian wholesalers from each province or region. It provides information about the situation in the wholesale sector and is an important indicator of the state of the Canadian economy. The total value of sales is calculated by deflating the current value in dollars, using the indices for imports and industrial prices. Since many of the products to wholesalers in the country are subject to import fluctuations of the Canadian dollar, this can have a significant impact on the prices of goods bought and sold by them. This is the percentage change from the previous month.

Statistics Canada is scheduled to publish the official report at 12:30 GMT tomorrow. A higher than expected gain would certainly heighten the appeal of the loonie.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/CAD manages to breach the first resistance level at 1.5244, it will probably continue up to test 1.5263. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5287.

If EUR/CAD manages to breach the first key support at 1.5201, it will probably continue to slide and test 1.5177. With this second key support broken, the movement to the downside will probably continue to 1.5201.