EURCAD: Testing neckline

UP NEXT:

You may have noticed how well EUR crosses performed last night on the Business Confidence alone. This would have been triggered by nervous bears but also acts as a warning of what to expect if we see any strength in European data (more short covering to support EUR crosses).

It will then be over to the US where we have Core PCE (the Fed's preferred inflation indicator) along with GDP. When you consider the FED have been warning of softer inflation, then even coming in on or just below target would probably be a USD bullish signal to the markets and bring further pressure on EURUSD.

TECHNICAL ANALYSIS:

EURCAD: Testing neckline

This pair has been well documented recently so this is an alert to notify you we have now retraced towards the neckline.

This could suit a quick and dirty entry with a stop above the neckline and to walk away to let the market do it's thing. There is plenty of data form Europe and Canada to get some movement here and only time will tell how directional that move may be.

EURUSD: Overall bearish but with upside potential

Nice and easy today as not a single level needs adjusting from yesterday. The only thing I will add is that the 1.24428 resistance zone is now the level to choose between bullish or bearish setups.

With data from Europe and US tonight we can expect positions to be taken before the event, with any softness in numbers creating even bigger moves.

Share: Analysis feed

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed