FxWirePro: EUR/CAD set to extend weakness, common currency unfazed after mixed eurozone data

EUR/CAD chart - Trading View 

Technical Analysis: Bias Bearish

EUR/CAD was trading 0.22% lower on the day at 1.4847 at around 09:25 GMT. The pair slumps for the 3rd straight session to hit fresh 3-week lows, outlook remains bearish. The pair has been extending downside after recovery attempts were rejected at daily cloud.

Data released earlier on Friday:

Preliminary report published by Destatis showed on Friday that the German economy shrank 1.7% q/q in Q1 2021 when compared to the expectations of -1.5% and compared to +0.3% in the previous quarter.

Meanwhile, the annualized GDP rate fell by 3% in Q1 against the previous reading of -3.7% and beat market expectations of -3.2% contraction.

Eurozone Preliminary CPI rises to 1.6% YoY in April, in line with estimates, while accelerating March’s 1.3%.

The core CPI eased to 0.8%% YoY in April when compared to 0.9% expectations and 0.9% booked in March.

The Eurozone economy contracted 0.6% on quarter in the three months to March of 2021, beating -0.8% expected and -0.7% prior

On an annualized basis, the bloc’s GDP rate dropped by 1.8% in Q1 vs. -4.9% booked in the final quarter of 2020 while beating -2% expectations.

Eurozone's unemployment rate arrived at 8.1% in March when compared to February’s 8.3%.

Separately, Italy GDP contracted by 0.4% QoQ in Q1 but bettered estimates of -0.5% and -1.8% previous.

Technical Analysis:

- Oscillators are biased lower, RSI has slipped below 50 mark

- GMMA indicator shows major and minor trend are bearish

- On the weekly charts the pair has paused 3 straight weeks of gains

-  200W MA and weekly cloud cap upside

- MACD shows bearish crossover on signal line

- Bearish 5-DMA crossover on 20-DMA adds to the downside bias

Support levels - 1.4802 (Lower BB), 1.4765 (trendline), 1.4605 (200-month MA)

Resistance levels - 1.4922 (5-DMA), 1.4961 (21-EMA), 1.5015 (200H MA)

Summary: The single currency largely unfazed by mixed eurozone data. Technical indicators are bearish. Scope for test of trendline support at 1.4765 ahead of 200-month MA at 1.4605.