EUR/CAD is currently residing in bearish bias of the market whereas the bears were quite impulsive with the gains after bouncing off the 1.50 resistance area. CAD is currently quite strong in nature in light of the recent rate hike and upbeat economic reports being published. On the other hand, EUR is struggling to make some gains with its mixed economic reports. Today, German Trade Balance report was published with a worse figure at 19.5B from the previous figure of 21.2B which was expected to be at 20.3B, French Government Budget Balance showed a wider deficit at -83.8B from the previous figure of -62.3B, and French Industrial Production report was only published with a better value at 0.5% as expected from the previous value of -1.1%. On the CAD side, today Employment Change report is expected to be published with a better figure at 17.8k from the previous figure of 10.9k and Unemployment Rate is expected to be unchanged at 6.3%. Canada's economic reports which are going to be published today are expected to have a high impact in the market creating a good amount of volatility and increase gains on CAD against EUR today. If Canada's reports are published with expected values, then we might see more dominance of CAD against EUR in the future taking the price towards the yearly low of 1.3770 area.
Now let us look at the technical chart. The price is currently showing some bullish move after being impulsively bearish after bouncing off the 1.50 resistance area. Currently the price is expected to show more bearish pressure in the market as the price remains below the dynamic level of 20 EMA and the nearest horizontal resistance of 1.4730 with a target towards the recent support level of 1.4290.
