Forex Market: EUR/CAD daily trading forecast

Friday’s trade saw EUR/CAD within the range of 1.3507-1.3683. The pair closed at 1.3583, gaining 0.18% on a daily basis. The cross rose 1.24% for the whole week, following three consecutive weeks of losses.

At 8:10 GMT today EUR/CAD was down 0.01% for the day to trade at 1.3580. The pair touched a daily low at 1.3570 at 7:05 GMT.

Fundamentals

Euro area

Consumer Confidence – preliminary

Confidence among consumers in the Euro area probably improved for a third consecutive month in March. The preliminary value of the consumer confidence index probably rose to -5.95 from a final value of -6.7 in February. If so, this would be the highest level of confidence since August 2007, when the indicator was reported at a final value of -4.0. The index measures consumer confidence on a scale of -100 to +100. A reading of -100 suggests a lack of confidence, zero means neutrality and a reading of +100 indicates extreme levels of confidence. The index reflects the level of optimism, which consumers have about economic development in the region. The Business and Consumer Survey is conducted by phone and includes 23 000 households in the Euro area. The questions asked stress on current economic and financial situation, savings intention and also on expected developments regarding consumer price indexes, general economic situation and major purchases of durable goods. This indicator is one of the five major components, that comprise the Economic Sentiment Indicator (ESI).

Higher confidence usually implies greater willingness to spend, including large-ticket purchases, while consumer spending is a key factor behind economic growth. Therefore, in case the consumer confidence index improved more than anticipated, this would cause a bullish impact on the euro. The European Commission is expected to release the preliminary reading at 15:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.3591. In case EUR/CAD manages to breach the first resistance level at 1.3675, it will probably continue up to test 1.3767. In case the second key resistance is broken, the pair will probably attempt to advance to 1.3851.

If EUR/CAD manages to breach the first key support at 1.3499, it will probably continue to slide and test 1.3415. With this second key support broken, the movement to the downside will probably continue to 1.3323.

The mid-Pivot levels for today are as follows: M1 – 1.3369, M2 – 1.3457, M3 – 1.3545, M4 – 1.3633, M5 – 1.3721, M6 – 1.3809.

In weekly terms, the central pivot point is at 1.3581. The three key resistance levels are as follows: R1 – 1.3787, R2 – 1.3991, R3 – 1.4197. The three key support levels are: S1 – 1.3377, S2 – 1.3171, S3 – 1.2967.