EURCAD Looks Set For More Gains around 1.4040 Ahead of CAN CPI17 July, 2015 by Aayush Jindal in Market Analysis
- Euro after dipping against the Canadian Dollar found support around 1.4040 and currently trading higher.
- Canadian Consumer Price Index (CPI) published by the Statistics Canada is a major release scheduled today, which might ignite moves in the Canadian Dollar.
- Earlier today, the Australian Conference Board leading Index released by the Conference Board came in at 0.2% in May 2015.
EURCAD Technical Analysis
The Euro struggled against the Canadian Dollar, as the EURCAD pair declined towards 1.4040-30 support area recently. However, the pair somehow managed to find support around the mentioned area and is currently trading higher. There is a bullish trend line formed on the hourly chart of the EURCAD pair, which is acting as a hurdle for sellers. The best part is the fact that the pair has settled above the 100 and 200 hourly simple moving average, which is a positive sign.
The pair managed to clear the 50% Fib retracement level of the last drop of 1.4190 to 1.4034, and currently heading towards 61.8% Fib level.
If it corrects lower from the current levels, then it might find support around the 100 and 200 SMA’s confluence area. Any further downsides could see buyers around the bullish trend line.
Later today, there are many economic releases lined up in Canada. The most important one is the Consumer Price Index (CPI), which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be released by the Statistics Canada. The forecast is slated for an increase of 0.3% in June 2015, compared with the preceding month.
If there is miss in the outcome, then the Canadian Dollar might come under pressure in the near term.
Australian Conference Board leading Index
Earlier during the Asian session, the Australian Conference Board leading Index, which measures future trends of the overall economic activity including employment, average manufacturing workweek and initial claims was released by the Conference Board. The outcome was better when compared with the last decline of -0.3%, as the Australian Conference Board leading Index came in at +0.2%.
There was minor upside reaction noted in AUDUSD after the release, as the pair found support around 0.7400.