Forex Market: EUR/CAD daily trading forecast

Yesterday’s trade saw EUR/CAD within the range of 1.4107-1.4204. The pair closed at 1.4196, gaining 0.37% on a daily basis.

At 7:59 GMT today EUR/CAD was down 0.15% for the day to trade at 1.4203. The pair touched a daily low at 1.4199 at 7:58 GMT.

Fundamental view

Canada

Employment

The number of the employed people in Canada probably increased by 20 000 in September compared to August, according to market expectations. In August compared to July the number of the employed dropped by 11 000, or the most since April. Creation of new job positions is considered of utmost importance for consumer spending. In case employment in the country increased at a faster pace than expected, the Canadian dollar would be supported.

The rate of unemployment in the country probably remained unchanged at 7.0% in September. If so, this would be the third consecutive month with unemployment being steady at 7%. Lower than expected rates would have a bullish effect on the local currency. Statistics Canada is expected to release its official report at 12:30 GMT.

Bank of Canada Business Outlook Survey

At 14:30 GMT Bank of Canada will publish its Business Outlook Survey. The latter represents a summary of interviews conducted by the bank’s regional offices with the senior management of about 100 business entities, selected in accordance with the composition of nation’s Gross Domestic Product. The major goal is to reflect the perspectives of these businesses on topics of key interest to the central bank, including demand and capacity pressures, as well as companies’ forward-looking views on economic activity. The survey encompasses opinions expressed by the respondents, which do not necessarily come in consonance with bank’s view or policy. Optimistic views will usually provide support to the loonie, while pessimistic ones will have the opposite effect.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4169. In case EUR/CAD manages to breach the first resistance level at 1.4231, it will probably continue up to test 1.4266. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4328.

If EUR/CAD manages to breach the first key support at 1.4134, it will probably continue to slide and test 1.4072. With this second key support broken, the movement to the downside will probably continue to 1.4037.

The mid-Pivot levels for today are as follows: M1 – 1.4055, M2 – 1.4103, M3 – 1.4152, M4 – 1.4200, M5 – 1.4249, M6 – 1.4297.

In weekly terms, the central pivot point is at 1.4087. The three key resistance levels are as follows: R1 – 1.4170, R2 – 1.4268, R3 – 1.4351. The three key support levels are: S1 – 1.3989, S2 – 1.3906, S3 – 1.3808.