Key Points
- The Euro remained in an uptrend versus the Canadian dollar, and recently broke a resistance zone.
- There was a contracting triangle pattern formed on the hourly chart of the EURCAD pair, which was cleared recently.
- Today in the Euro Zone, the Sentix Investor Confidence was released by the Sentix GmbH.
- The outcome was positive, as there was a rise from the last reading of 5.6 to 8.5 in Oct 2016.
EURJPY Technical Analysis
The Euro after trading in a consolidation pattern versus the Canadian dollar for some time, broke higher. There was a contracting triangle pattern formed on the hourly chart of the EURCAD pair, which was broken during the recent move.
The pair also managed to settle above the 21 hourly simple moving average, which is a positive sign and suggesting that the pair may rise further.
The pair is currently correcting lower, but may find support near the broken triangle upper trend line or at 1.4790-80.
Euro Zone Sentix Investor Confidence
Today in the Euro Zone, the Sentix Investor Confidence, which shows the market opinion about the current economic situation and the expectations for the next semester and is composed by 36 different indicators was released by the Sentix GmbH.
The market was expecting a rise from the last reading of 5.6 to 6.3 in Oct 2016. However, the result was better, as there was a rise to 8.5. Moreover, the Italian Industrial Output released by the National Institute of Statistics also posted a positive outcome. There was a rise of 1.7% in August 2016, compared with the previous month. The market was on the other hand expecting a decline of 0.1%.
Overall, the euro may correct a few pips lower from the current levels, but mostly remains in an uptrend vs CAD.
