Forex Market: EUR/CAD daily forecast

During yesterday’s trading session EUR/CAD traded within the range of 1.4872-1.4955 and closed at 1.4914.

At 6:28 GMT today EUR/CAD was losing 0.01% for the day to trade at 1.4912. The pair touched a daily low at 1.4904 at 6:15 GMT.

Fundamental view

Euro zone

Confidence among investors in the Euro zone probably improved during the current month, with the corresponding index coming in at a reading of 13.2. In May it stood at 12.8. 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 8:30 GMT.

Canada

Annualized number of housing starts in Canada probably declined to 185 000 in May from 194 800 in the previous month. Housing starts are considered as a key indicator, reflecting nation’s housing sector’ resilience. In case the number of housing starts rose more than expected, this would provide support to the loonie. Canada’s Mortgage and Housing Corporation will release the official numbers at 12:15 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/CAD manages to breach the first resistance level at 1.4955, it will probably continue up to test 1.4997. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5038.

If EUR/CAD manages to breach the first key support at 1.4872, it will probably continue to slide and test 1.4831. With this second key support broken, the movement to the downside will probably continue to 1.4789.