Key Points
- The Euro bounced back after trading below the 1.3800 support against the Canadian Dollar.
- The EURCAD pair moved higher and also broke a bearish trend line on the hourly chart at 1.3830.
- Today in the Euro Zone, the French ILO Unemployment Rate for Q4 2016 was released by INSEE.
- The result was neutral, as the ILO Unemployment Rate posted 10%, where the last reading was revised to 10.1%.
EURCAD Technical Analysis
The Euro was in a solid downtrend against the Canadian dollar, and even broke the 1.3800 support area to register a low at 1.3784. The EURCAD pair later found support and started an upside move to trade back above the 1.3800 handle.
During the upside move, the pair also broke a bearish trend line on the hourly chart at 1.3830, and the 21 hourly simple moving average. Moreover, the pair also settled above the 38.2% Fib retracement level of the last decline from the 1.3946 high to 1.3784 low.
So, the GBPUSD pair is likely to recover further, and may challenge the 76.4% Fib retracement level of the last decline from the 1.3946 high to 1.3784 low at 1.3908.
French ILO Unemployment Rate
Today in the Euro Zone, there was no major release. One of the low risk events was the French ILO Unemployment Rate for Q4 2016 by INSEE. The market was not expecting any change in the number of unemployed workers compared to all the active workers in the economy.
The result was neutral, as the ILO Unemployment Rate posted 10%, where the last reading was revised to 10.1%. The report added the “In metropolitan France only, the number of unemployed decreased by 31,000 to 2.8 million people unemployed; thus, the unemployment rate decreased by 0.1 percentage points q-o-q, standing at 9.7% of active population. It decreased among youths and persons aged 50 and over, whereas it increased for those aged 25 to 49. Over a year, the unemployment rate fell by 0.2 percentage points”.
Overall, the EURCAD might trade further higher towards 1.3910 in the near term, as long as it stays above 1.3850.
