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The Euro traded lower against the Canadian dollar during this past week. However, the EURCAD pair seems to be now stabilizing around the 1.4700 support level. There is a classic breakout pattern forming on the hourly timeframe for the pair. There is a trend line formed, which has acted as a resistance for more than a couple of occasions. If the pair manages to clear the plotted trend line, then a move higher is possible in the near term.
Currently, the same trend line coincides with the 23.6% fib retracement level of the last move lower from the 1.4954 high to the 1.4670 low. So, technically this trend line holds a lot importance in the short term. One important thing to note here is that the pair is now trading above the 100 hourly simple moving average, which can be considered as a positive sign. So, once the pair break the trend line resistance zone, then it might climb higher in no time.
The RSI on the hourly timeframe is also holding the 50 level nicely, which adds to the bullish pressure on the pair. A break and close above the 1.4760 level might take the pair towards the 38.2% fib level, followed by the 200 hourly SMA.
German ZEW Economic Sentiment
Moments ago, the German ZEW Economic Sentiment was released. The market was expecting a rise from 33.1 to 35.0. However, the outcome was a disappointing one. The German ZEW Economic Sentiment fell to 29.8. The Euro fell in an early reaction. It would be interesting to see whether it continues to trade lower in the coming hours or not.