Forex Market: EUR/CAD daily trading forecast

Yesterday’s trade saw EUR/CAD within the range of 1.4211-1.4043. The pair closed at 1.4179, gaining 0.47% on a daily basis.

At 9:05 GMT today EUR/CAD was up 0.35% for the day to trade at 1.4229. The pair held in a daily range of 1.4175-1.4237.

Fundamental view

Eurozone

Eurostat is expected to report at 10:00 GMT that producer prices within the Euro region slid by an annualized 1.5% in September, compared to a 1.4% decline in August. Month-on-month, the Producer Price Index is expected to have remained unchanged in September, following a 0.1% deflation in the preceding month.

Producer inflation measures average changes in prices received by domestic producers for their output. It’s a leading price of consumer price inflation.

Outside the Euro area, activity growth in United Kingdom’s sector of construction probably slowed down in October, but still posted a hefty expansion, with the corresponding PMI expected to come in at 63.5, down from 64.2 in September.

The index is based on a survey encompassing managers of companies operating in the construction sector. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Higher-than-projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 9:30 GMT.

Canada

Statistics Canada is expected to report at 13:30 GMT that Canadas trade balance probably narrowed its deficit to CAD 0.3 billion in September from CAD 0.61 billion in August.

The trade balance measures the difference in value between a country’s exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form the country’s Gross Domestic Product. Generally, exports reflect economic growth, while imports indicate domestic demand. A widening trade surplus implies higher demand for the local currency. In case the trade balance deficit widened more than anticipated, this would pressure down the Canadian dollar.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4144. In case EUR/CAD manages to breach the first resistance level at 1.4246, it may continue up to test 1.4312. In case the second key resistance is broken, the pair could advance to 1.4414.

If EUR/CAD manages to breach the first key support at 1.4078, it may continue to slide and test 1.3976. With this second key support broken, movement to the downside could extend to 1.3910.

The mid-pivot levels for today are as follows: M1 – 1.3943, M2 – 1.4027, M3 – 1.4111, M4 – 1.4195, M5 – 1.4279, M6 – 1.4363.

In weekly terms, the central pivot point is at 1.4155. The three key resistance levels are as follows: R1 – 1.4260, R2 – 1.4410, R3 – 1.4515. The three key support levels are: S1 – 1.4005, S2 – 1.3900, S3 – 1.3750.