Forex Market: EUR/CAD daily forecast

During yesterday’s trading session EUR/CAD traded within the range of 1.4558-1.4630 and closed at 1.4603.

At 6:32 GMT today EUR/CAD was gaining 0.13% for the day to trade at 1.4619. The pair touched a daily high at 1.4624 at 5:45 GMT.

Fundamental view

Euro zone

Activity in Italy’s sector of manufacturing probably expanded in July, with the corresponding PMI coming in at a reading of 52.8, as expected by experts, from 52.6 in June. Values above the key level of 50.0 indicate increased activity. Markit Economics is expected to release the official data at 7:45 GMT.

France’s final manufacturing PMI probably remained in the zone of contraction for a third straight month in July, while confirming the preliminary PMI reading of 47.6, which was reported on July 24th. The official reading is due out at 7:50 GMT.

The final reading of German manufacturing PMI probably confirmed the preliminary value for July, with the index coming in at 52.9. Markit will release the official reading at 7:55 GMT.

The final manufacturing PMI in the Euro zone probably also confirmed the preliminary value for July, with the index remaining at 51.9. The official reading is scheduled to be released at 8:00 GMT. The PMI is based on a monthly survey, encompassing a sample of business entities, which represents private sector conditions in terms of new orders, output, employment, prices etc. Higher than expected readings would provide support to the 18-nation common currency.

Canada

The RBC Canadian Manufacturing PMI probably shrank to 53.4 in July, according to the median analysts estimate, from 53.5 in the prior month, that was the strongest since November 2013.

The report on the RBC PMI for Manufacturing in Canada is based on data collected from monthly replies to questionnaires sent to supply managers in over 400 industrial companies. RBC PMI is a composed index based on five individual indexes: new orders, production, employment, delivery time, stocks of purchases. Values of the index above the key level of 50.0 indicate overall increase in the activity in the sector, while readings below 50.0 are indicative of contraction in the sectors activity. PMI studies are earlier indicators of economic conditions published each month, therefore, are available much before the publication of relevant data from government authorities.

Royal Bank of Canada will release an official report at 13:30 GMT. In case, activity in the sector shrank less than expcted, this would boost loonies demand.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4597. In case EUR/CAD manages to breach the first resistance level at 1.4634, it will probably continue up to test 1.4669. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4708.

If EUR/CAD manages to breach the first key support at 1.4564, it will probably continue to slide and test 1.4525. With this second key support broken, the movement to the downside will probably continue to 1.4492.

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.