After an impulsive bullish move breaking above 1.4720 resistance level, the pair is currently residing in a corrective structure below 1.4970 resistance level. EUR has been quite stronger than CAD despite the hawkish market and Bank of Canada Sentiments. Recently both the currency in the pair has been producing mixed economic reports for which the pair is currently residing inside a corrective range. Recently CAD Housing Starts report was published with an increased figure to 222k from the previous figure of 213k which was expected to decrease to 204k and Building Permits were published positive at 2.5% which was better than expected result of -1.8% but worst of the previous value of 10.7%. Today CAD NHPI report is going to be published which is expected to decrease to 0.5% from the previous value of 0.7%. On the other hand, today EUR French Industrial Production report was published with worse figure at -1.1% from the previous value of 1.9% which was expected to be at -0.6% and Italian Trade Balance report was published with an increased figure of 4.50B from the previous figure of 4.34B which was expected to decrease to 3.87B. To sum up, due to mixed economic reports still in process for both the currencies of the pair the corrective structure is expected to continue further but if CAD report today comes out better than expected then we can expect bearish pressure in this pair which is expected to last for certain period.
Now let us look at the technical view, the price is currently residing inside a corrective volatile structure below the resistance level of 1.4970. There were a few bullish rejections off the level which also signals the bearish intervention in the pair which is expected to lead to further bearish pressure with a target towards 1.4730 support level in the coming days. As the price remains below 1.4970 with a daily close the bearish bias is expected to continue further.
