Key Points
- The Euro remained in a solid uptrend against the Canadian dollar, and traded above 1.4850.
- There is a crucial resistance formed near 1.4900 in EURCAD, which must be broken for an upside move.
- Today in the Euro Zone, the Services PMI was released by the Markit Economics.
- The outcome was below the forecast of 53.5, as there was a decline to 52.8 in Oct 2016.
EURCAD Technical Analysis
The Euro made a nice upside move lately against the Canadian dollar to trade above the 1.4800 and then 1.4850 resistance. It also moved above the 21 hourly simple moving average, but the EURCAD pair is currently finding sellers near 1.4900.
There is a major resistance near 1.4890-1.4900, acting as a hurdle for more gains, and preventing a break higher.
There is a chance of a minor dip in the pair, but it could find support near 1.4860. As long as the pair is above the 21 hourly SMA, it may try to clear the 1.4900 resistance.
Euro Zone Services PMI
Today in the Euro Zone, the PMI service, which is an indicator of the economic situation in the Euro Zone services sector was released by the Markit Economics.
The market was expecting no change from the last reading of 53.5 in Oct 2016. However, the result was lower, as the PMI posted a decline to 52.8. Commenting on the report, the Senior Economist at IHS Markit, Rob Dobson, stated “The eurozone manufacturing sector made a positive start to the final quarter. Output, new orders and new export business all rose at some of the fastest rates achieved over the past three years, building on the solid increases in quarter three and underpinning the steepest jobs growth since mid-2011”.
Overall, the EURCAD pair may decline a few pips, but as long as it is above the 21 hourly SMA, it may attempt to break the 1.4900 resistance.
