Key Points
- The Euro remained under a lot of bearish pressure versus the Canadian dollar, and traded as low as 1.4273.
- There is a bearish trend line formed on the hourly chart of EURCAD, which is acting as a major barrier on the upside.
- Today, the Canadian Wholesale Sales figure will be released by the Statistics Canada.
- The market is hoping for a rise of 0.4% in Sep 2016, compared with the last increase of 0.8%.
EURCAD Technical Analysis
The Euro recently declined from 1.4400 to 1.4273 against the Canadian dollar, and was seen under a bearish pressure. The EURCAD pair is currently recovering, and moved above the 23.6% Fib retracement level of the last drop from the 1.4377 high to 1.4273 low.
However, there is a major resistance on the upside in the form of a bearish trend line formed on the hourly chart of EURCAD at 1.4340-50. The 21 hourly simple moving average is also just below the stated levels. Moreover, the 61.8% Fib retracement level of the last drop from the 1.4377 high to 1.4273 low is also aligned.
So, the highlighted trend line resistance is a major hurdle on the way up for the pair, and may act as a selling area.
Canadian Wholesale Sales
Today during the NY session, the Wholesale Sales, which shows value of sales made by wholesalers in Canada will be released by the Statistics Canada.
The market is hoping for an increase of 0.4% in sales in Sep 2016, compared with previous month. This is on the lower side, as the last rise was 0.8%. So, if the outcome exceeds the forecast, there is a chance of CAD gaining traction.
Overall, the Euro may correct towards the trend line resistance at 1.4340-50, but it may face sellers near it.
