EUR/CAD has been impulsively bearish recently despite the bad Canadian economic reports published recently. EUR has been quite neutral with the economic reports this week which lead to further weakness of the currency without any favorable gains. Today EUR Final CPI report was published as expected with an unchanged value at 1.3%, Final Core CPI also followed the same path and published with an unchanged value at 1.2% but Trade Balance showed an increase to 22.3B from the previous figure of 19.0B which was expected to be at 20.4B. Currently, ECB Monetary Policy Meeting accounts are going on which is expected to be neutral as well because of no possible rate hike decisions are in sight. On the CAD side, today Manufacturing Sales report is going to be published which is expected to be negative at -1.0% which previously was positive at 1.1%. Before the CAD news gets published CAD has gained quite impulsively which is expected to continue further if CAD report comes out better than expected today. As the CAD remains hawkish with the sentiment further gains on the bearish pressure is expected in this pair.
Now let us look at the technical view, the price has been quite impulsively bearish since yesterday which is expected to continue further if price breaks below 1.4720 level with a daily close. As the price remains below 1.50 level the bearish bias is expected to continue further with a target towards 1.4500-1.4450 area.
