Forex Market: EUR/CAD daily forecast

During yesterday’s trading session EUR/CAD traded within the range of 1.4508-1.4570 and closed at 1.4552.

At 6:51 GMT today EUR/CAD was gaining 0.03% for the day to trade at 1.4557. The pair touched a daily high at 1.4562 at 2:50 GMT.

Fundamental view

Euro zone’s gauge of economic sentiment probably remained unchanged at 102.0 in July, matching Junes reading.

This is a compound index, that is comprised of five sub-indexes, reflecting sentiment in different sectors of the economy. It includes consumer confidence, industrial confidence, confidence in the sector of services, confidence in the retail trade sector and confidence in the sector of construction.

Readings above the key level of 100.0 are indicative that optimistic forecasts overwhelm pessimistic ones. The more readings distance from it, the stronger the economic confidence is. The official reading is due out at 9:00 GMT.

At the same time, the preliminary annualized index of consumer prices (CPI) in Germany probably slowed down to 0.8% in July from 1.0% in the preceding month. In monthly terms, the CPI probably increased 0.2% this month, after consumer prices climbed 0.3% in June.

Germany’s preliminary annualized index of consumer prices, evaluated in accordance with Eurostat’s harmonized methodology, probably was 0.8% in July, after reaching 1.0% in June. If the CPI accelerates more than expected, this will heighten the appeal of the euro. The official data will be released at 12:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4543. In case EUR/CAD manages to breach the first resistance level at 1.4579, it will probably continue up to test 1.4605. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4641.

If EUR/CAD manages to breach the first key support at 1.4517, it will probably continue to slide and test 1.4481. With this second key support broken, the movement to the downside will probably continue to 1.4455.

In weekly terms, the central pivot point is at 1.4495. The three key resistance levels are as follows: R1 – 1.4572, R2 – 1.4619, R3 – 1.4696. The three key support levels are: S1 – 1.4448, S2 – 1.4371, S3 – 1.4324.