Forex Market: EUR/CAD daily forecast

During yesterday’s trading session EUR/CAD traded within the range of 1.4681-1.4742 and closed at 1.4700.

At 6:48 GMT today EUR/CAD was losing 0.01% for the day to trade at 1.4698. The pair touched a daily low at 1.4681 at 6:20 GMT.

Technical view

The ZEW economic sentiment in Germany probably improved to 35.0 in June, according to the median experts’ forecast. In May, the index came in at 33.1, which was the weakest since January 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 sentiment index in the Euro zone probably jumped to 59.6 this month, according to the median analysts’ estimate. In May, the index came in at 55.2, which was the weakest since August 2013.
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.

Fundamental view

According to Binary Tribune’s daily analysis, in case EUR/CAD manages to breach the first resistance level at 1.4760, it will probably continue up to test 1.4791. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4835.

If EUR/CAD manages to breach the first key support at 1.4685, it will probably continue to slide and test 1.4641. With this second key support broken, the movement to the downside will probably continue to 1.4610.