Forex Market: EUR/CAD daily trading outlook

Friday’s trade saw EUR/CAD within the range of 1.4194-1.4049. The pair closed at 1.4108, shedding 0.21% on a daily basis.

At 8:08 GMT today EUR/CAD was up 0.16% for the day to trade at 1.4134. The pair held in a daily range of 1.4107-1.4137.

Fundamentals

Eurozone

Sentix GmbH will report at 09:30 GMT on investor confidence within the Eurozone in November. According to analysts’ forecasts, investor sentiment probably deteriorated this month, with the corresponding index projected to come in at -15.0 compared to -13.7 in October. If confirmed, this would be the worst level of confidence since May 2013.

The report is based on a survey encompassing about 2 800 investors and analysts. A reading above the zero threshold indicates optimism, and vice versa.

Another report by Italy’s National Institute of Statistics (ISTAT) is anticipated to show that the nation’s industrial output expanded by an annualized 0.4% in September following a 0.7% contraction a month earlier and a 1.8% decline in July.

In monthly terms, Italy’s industrial production probably grew by 0.2% following up on a 0.3% jump in August.

In Greece, industrial production likely contracted at the annual pace of 3.3% in September after it slid 5.7% a month earlier, while consumer prices probably decelerated by an annualized 0.6% in October following a 0.8% deflation a month earlier.

Canada

Housing starts in Canada probably rose in October compared to a month earlier, the Canadian Mortgage and Housing Corporation is expected to report. The corresponding Housing Starts indicator is projected to come in at 199 800, up from 197 300 in September.

Housing starts reflects the rate of growth in housing construction and is a leading indicator of strength in the housing sector due to its sensitivity to changes in the business cycle. It measures the change in the annualized number of new residential buildings that began construction during the reported month.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4117. In case EUR/CAD manages to breach the first resistance level at 1.4185, it may continue up to test 1.4262. In case the second key resistance is broken, the pair could advance to 1.4330.

If EUR/CAD manages to breach the first key support at 1.4040, it may continue to slide and test 1.3972. With this second key support broken, movement to the downside could extend to 1.3895.

The mid-pivot levels for today are as follows: M1 – 1.3934, M2 – 1.4006, M3 – 1.4079, M4 – 1.4151, M5 – 1.4224, M6 – 1.4296.

In weekly terms, the central pivot point is at 1.4166. The three key resistance levels are as follows: R1 – 1.4289, R2 – 1.4470, R3 – 1.4593. The three key support levels are: S1 – 1.3985, S2 – 1.3862, S3 – 1.3681.