FxWirePro: EUR/CAD spikes over 0.40%, stronger Eurozone CPI figures underpin euro

Chart - Courtesy Trading View 

Technical Analysis: Bias Bullish

- EUR/CAD was trading 0.41% higher on the day at 1.4348 at around 12:15 GMT

- The pair has broken above 21-EMA resistance, raising scope for further upside

- Price action has snapped 5-week bearish streak, scope for test of daily cloud

- Momentum has turned bullish, RSI is well above the 50 mark, Stochs are sharply higher

- GMMA indicator shows bullish trend shift on the intraday charts

Fundamental Overview:

Eurozone inflation follows German CPI data, surpassed expectations, underpinning the euro.

Eurozone headline CPI jumped 5.1% YoY in January from 5.0% previous, well above the consensus forecast of 4.4%. 

Further, the core CPI arrived at 2.3% YoY during the reported month as against 1.9% expected and the 2.6% reported in December. 

Support levels - 1.4291 (21-EMA), 1.4266 (5-DMA), 1.4248 (200H MA)

Resistance levels - 1.4357 (55-EMA), 1.4403 (Converged cloud base and Upper BB), 1.4458 (110-EMA)

Summary: EUR/CAD poised for further upside. 55-EMA is immediate resistance at 1.4357. Break above 55-EMA will see test of daily cloud.