EURCAD Taking Advantage of Lateral Movements
Today is a day full of important economic events for the Eurozone. Highlights include a speech by Vice President Luis de Guindos, along with the release of key data on unemployment and economic sentiment in the Eurozone, as well as production figures from Portugal. Later in the day, we will be watching for inflation rates in Canada and U.S. housing permits. This news is key in the Euro's market movements against the Canadian dollar Today.
De Guindos has highlighted that inflation is contracting as the European economy slows, especially the German economy. However, he stresses that the labor market remains solid for Europe as a whole. In June, with data from President Lagarde's press conference in hand, the ECB is expected to make decisions based on the information received. Barometers, such as Bankinter's, underline a possible rate change to between 3.85% and 3.4% with a possible contraction of capital expansion towards 2025.
Technical analysis shows a sideways range in the EURCAD cross throughout March on the daily chart, with the pair moving between 1.50432 and 1.41563. Narrowing further this past week between 1.47896 and 1.44432. If the Eurozone news outperforms the Canadian market, we could see an upward correction in the Euro against the Canadian dollar looking for the highs previously indicated on the daily timeframe. Otherwise, the Canadian dollar could strengthen, looking for the 1.45546 area. The RSI Divergence RSI suggests a possible development in this direction currently marking 54.89%, while the previous volume candlestick trend presents an advancing bearish pressure. The price bell signals that 1.46705 is the most traded price at the control point (POC), which could become the pivot point for the sideways movement of this currency pair in the coming months or at least until June.
De Guindos has highlighted that inflation is contracting as the European economy slows, especially the German economy. However, he stresses that the labor market remains solid for Europe as a whole. In June, with data from President Lagarde's press conference in hand, the ECB is expected to make decisions based on the information received. Barometers, such as Bankinter's, underline a possible rate change to between 3.85% and 3.4% with a possible contraction of capital expansion towards 2025.
Technical analysis shows a sideways range in the EURCAD cross throughout March on the daily chart, with the pair moving between 1.50432 and 1.41563. Narrowing further this past week between 1.47896 and 1.44432. If the Eurozone news outperforms the Canadian market, we could see an upward correction in the Euro against the Canadian dollar looking for the highs previously indicated on the daily timeframe. Otherwise, the Canadian dollar could strengthen, looking for the 1.45546 area. The RSI Divergence RSI suggests a possible development in this direction currently marking 54.89%, while the previous volume candlestick trend presents an advancing bearish pressure. The price bell signals that 1.46705 is the most traded price at the control point (POC), which could become the pivot point for the sideways movement of this currency pair in the coming months or at least until June.
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