Key Points
- The Euro slowly moved higher against the Canadian dollar and challenged the 1.4500 resistance.
- There is a monster bullish trend line with support at 1.4420 formed on the hourly chart of EURCAD.
- Recently, the Euro Zone M3 money supply figure for Feb 2017 was released by the European Central Bank.
- The result was below the forecast, as there was a rise of 4.7%, less than the +4.9% forecast.
EURCAD Technical Analysis
The Euro slowly moved above 1.4450 against the Canadian dollar and remained in an uptrend. There was a test of the 1.4500 resistance, which once again acted as a hurdle for more gains in the EURCAD pair.
A break above the 1.4500 is needed for a push towards 1.4550 in the near term. On the downside, there is a monster bullish trend line with support at 1.4420 formed on the hourly chart.
An initial support is around the 23.6% Fib retracement level of the last wave from the 1.4357 low to 1.4498 high. As long as the pair is above 1.4420, there can be a break above 1.4500.
Euro Zone M3 Money Supply
The Euro Zone recently saw the release of the M3 money supply figure for Feb 2017 by the European Central Bank. The market was aligned for a rise of 4.9% in the supply in Feb 2017, compared with the same month a year ago.
The outcome was below the forecast, as there was a rise of 4.7%, less than the +4.9% forecast. The 3-monht change was +4.9%, less than the last +5%. The report added that the “annual growth rate of the narrower aggregate M1, which includes currency in circulation and overnight deposits, stood at 8.4% in February, unchanged from the previous month”.
Overall, the EURCAD pair might dip a few pips in the near term, but there are chances of a move above the 1.4500 resistance.
