Key Points
- The Euro traded above the 1.4550 resistance against the Canadian dollar, and remained in an uptrend.
- There is a clear uptrend formed, which can be clearly seen with the trend lines formed on the hourly chart of EURCAD.
- Today, the Italian Business Confidence released by the Istat posted an increase from the last revised reading of 102.1 to 103 In Oct 2016.
- The Euro Zone M3 money supply released by the European Central Bank posted a change of 5% in Sep 2016 (3m).
EURCAD Technical Analysis
The Euro made a nice move this week versus the Canadian dollar and traded above the 1.4550 resistance area. There are a couple of important trend lines formed on the hourly chart of EURCAD, which are signaling a clear uptrend.
On the downside, the first bullish trend line is positioned with the 21 hourly simple moving average at 1.4565 to act as a support area.
Moreover, there is another bullish trend line, which may act as a monster barrier if the pair corrects lower. Overall, the pair may continue to trade higher, and may challenge the 1.4630 level.
Italian Business Confidence
Today in The Euro Zone, the Italian Business Confidence, which is a survey of the current business condition in Italy was released by the Istat. The market was expecting an increase from the last reading of 101.9 to 102.1 in Oct 2016.
However, the result was better, as the index climbed to 103, and the last reading was revised to 102.1. The report stated that the “confidence climate index decreased in October 2016 from 108.6 to 108.0. The economic, personal and current components lowered (from 128.0 to 127.4, from 102.8 to 100.5 and from 106.8 to 102.8 respectively), while the future component grew from 112.8 to 114.3”.
The result was positive, which means the market sentiment still favors more gains in the Euro moving ahead.
