Technical Bias: Bullish
Key Takeaways
Euro surged higher recently and broke an important resistance area against the Canadian dollar.
Euro zone and German manufacturing and services PMI’s are scheduled for release later during the London session.
Euro zone manufacturing PMI is expected to climb by 0.2 points from 50.6 to 50.8.
EURCAD pair broke 200 SMA (4H) and climbed towards 1.4250 recently and currently correcting lower which can be considered as a buying opportunity.
Technical Analysis
There was a monster bearish trend line formed on the 4 hour chart of the EURCAD pair, which was broken recently. The most important point is that the pair is now trading above all three key simple moving average – 200, 100 and 50 (4H). This is a bullish sign in the near term. The pair recently spiked towards the 76.4% Fibonacci retracement level of the last drop from the 1.4341 high to 1.4035 low, but struggled to maintain the momentum. There is a chance of a correction towards the broken trend line which might act as a support moving ahead. However, an intermediate support can be seen around the 200 SMA (4H), followed by the 100 SMA which is around the broken trend line. So, the 1.4150 level might act as a strong support for the pair in the short term as the Euro buyers look set to take the pair higher.
On the upside, the next level of selling interest can be seen around the last swing high of 1.4340. Let us see how the pair reacts around the mentioned level if reached moving ahead.
Euro Zone Manufacturing and Services PMI
There are several important releases lined up during the London session today, including the Euro zone manufacturing and services PMI, German manufacturing and services PMI, France manufacturing and services PMI and Italian manufacturing and services PMI. The market is expecting a minor improvement this time which if turns correct might take the Euro higher.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.