Refer EUR/CAD chart on Trading View
- EUR/CAD is consolidating break below 61.8% Fib, bias bearish.
- Data released on Monday showed German factory orders contracted by 4% m/m in June, below analysts' estimate of -0.4%.
- Data suggested that the weakness in production has continued into Q3, weighing on the euro.
- Upbeat eurozone Investor Confidence Index which improved to 14.7 in August from 12.1 in July did little to support the single currency.
- Focus now on Germany industrial production and trade balance figures. If numbers disappoint, the euro could come under a renewed selling pressure.
- The pair finds strong trendline support at 1.4970, break below will accentuate weakness. Scope then for test of 78.6% Fib at 1.4808.
- On the flipside, 5-DMA at 1.5061 is immediate resistance. Break above could see test of 21-EMA at 1.5220
Support levels - 1.4970 (trendline), 1.4917 (May 30 low), 1.4808 (78.6% Fib)
Resistance levels - 1.5061 (5-DMA), 1.5095 (61.8% Fib), 1.51, 1.5220 (21-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-extends-weakness-after-rejection-at-21-EMA-eyes-618-Fib-at-15095-1411384) has almost hit all targets.
Recommendation: Watchout for break below 1.4970 for weakness, target 1.4920/ 1.4810.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -46.8801 (Neutral), while Hourly CAD Spot Index was at 105.299 (Bullish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
