CAD has been quite dominating in almost every currency pairs recently. EURCAD has been residing inside a corrective structure range between 1.4730 to 1.4970 area which was recently broken downwards with a daily close. Recently Euro had mixed economic reports which did not help the currency to gain over its recent weakening whereas CAD has been quite strong after the announcement about recent upcoming rate hike. Today EUR German Factory Orders report was published which was worse than expected at 1.0% which was expected to be at 1.9% and Retail PMI report is going to be published which is expected to show some positive outcome which previously was at 52.0. Today ECB Monetary Policy Meeting accounts is also going to be held which is a detailed record of ECB's Governing board's most recent meeting which is expected to show some hawkish report for the currency today. On the CAD side, today we have Trade Balance report which is expected to show an increase in deficit at -0.5B from the previous value of -0.4B and Building Permits is expected to show a positive result at 2.5% which previously was negative at -0.2%. Both the currencies has a good number of high impact events yet to be published and considering the ECB rate hike sentiment along with CAD rate hike sentiment a good amount of volatility is expected to strike the market today but CAD is expected to dominate EUR further in the coming days.
Now let us look at the technical view, the price has broken below the 1.4730 support level recently with a daily close which does signal a further bearish move in this pair with a target towards 1.4300 support area. Currently, the price is quite bearish in nature and which is expected to continue further until price breaks above 20 EMA with a daily close. A good fall towards 1.4300 is expected to hit the market in the coming days.
