Forex Market: EUR/CAD daily forecast

During yesterday’s trading session EUR/CAD traded within the range of 1.4970-1.5015 and closed at 1.4994.

At 8:13 GMT today EUR/CAD was gaining 0.29% for the day to trade at 1.5034. The pair touched a daily high at 1.5044 at 7:22 GMT, breaching the two key resistances.

Fundamental view

The economic sentiment in Germany probably deteriorated to 40.0 in May, according to the median experts forecast. In April, the index came in at 43.2, which was the weakest since August 2013.

The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published monthly. The study involves 350 financial experts. The indicator reflects the difference between the share of analysts that are optimistic and those that are pessimistic about the expected economic development in Germany over the next six months. A positive figure indicates that the proportion of optimists is larger than that of the pessimists.

In addition, the ZEW economic expectations index in the Euro zone probably jumped to 63.5 this month, according to the median analysts estimate. In April, the index came in at 61.2.

Higher-than-projected readings would certainly provide support to the 18-nation common currency. The official data is to be released at 9:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/CAD manages to breach the first resistance level at 1.5016, it will probably continue up to test 1.5038. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5061.

If EUR/CAD manages to breach the first key support at 1.4971, it will probably continue to slide and test 1.4948. With this second key support broken, the movement to the downside will probably continue to 1.4926.