Key Points
- The Euro managed to pop higher versus the Canadian dollar recently, and looks poised for more gains.
- There is a critical bullish trend line formed on the 4-hours chart of the EURCAD pair, which can be seen as a major support area.
- In the Euro Zone, the Italian Gross Domestic Product was released by the National Institute of Statistics.
- The outcome was positive, as there was a rise of 0.8% in Q2, more than the market expected.
EURCAD Technical Analysis
The Euro traded higher recently against the Canadian dollar, and it looks like there can be a new weekly high. There is a major bullish trend line formed on the 4-hours chart of the EURCAD pair, which can be seen as a buy area.
As long as the pair is above the trend line support and the 21 simple moving average (4-hours), there are chances of more gains.
On the upside, the most important hurdle is around the 1.4730-40 area where sellers may appear.
Italian Gross Domestic
Today during the London session, the Italian Gross Domestic Product, which is a measure of the total value of all goods and services produced by Italy was released by the National Institute of Statistics.
The forecast was lined up for a rise of 0.7% in Q2 2016, compared with the same quarter a year ago. However, the outcome was on the higher side, as there was a rise 0.8%. The report added that “Compared to the first quarter of 2016, final consumption expenditure remained unchanged, gross fixed capital formation decreased by 0.3 per cent; imports and exports increased by 1.5 per cent and 1.9 per cent respectively“.
Overall, the Euro has no reason to decline in the near term and may continue to gain pace vs the Canadian dollar.
