Technical Bias: Neutral
Key Takeaways
Euro fell two days in a row against the Canadian dollar as sellers were seen active recently.
In terms of technical levels, EURCAD could find next supports at 1.4120.
More downside cannot be denied as the pair broke an important support area lately.
There are a couple of important releases lined up during the London session today, including German unemployment and Spanish GDP report which might impact the shared currency.
Fundamentals
Looking ahead, the German unemployment rate and change will be published by the German Statistics Office later today. The forecast is slated for a change of 5K in October 2014, compared to the last time reading of 13K. The unemployment rate is expected to remain at 6.7%. Any rise in the unemployment might ignite a selling pressure on the Euro. The Spanish Gross Domestic Product (Estimated) will also be released by the National Institute of Statistics. We need to see how the outcome shapes and affects the Euro in the near term.
More Downside Likely?
EURCAD dipped below the 50-day simple moving average and 61.8% Fibonacci retracement level of the last leg from the 1.4010 low to 1.4499 high yesterday as the Euro sellers gained momentum during the NY session. There is an expanding triangle formed on the daily timeframe, which might act as a catalyst for the EURCAD pair in the medium term. The daily RSI also slipped below the 50 mark yesterday, which is a bearish sign and could encourage sellers moving ahead.
There is a chance that the pair might spike lower towards the 76.4% fib retracement level or even test the triangle support area if buyers fail to defend the mentioned fib level.
Moving Ahead
A lot depend on the upcoming economic releases which might decide the short-term direction in the Euro pairs. Overall, the trend is down and selling rallies can be a good option.
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