Key Points
- The Euro gained a lot of momentum against the Canadian dollar and traded above 1.4000.
- There are a couple of bullish trend lines formed on the hourly chart of EURCAD, which may act as a support on the downside near 1.4020 and 1.3980.
- Earlier today in the Euro Zone, the German Import price index was released by Deutsche Bundesbank.
- The result was better, as there was a rise of 0.3% Nov 2016, compared with Nov 2015.
EURCAD Technical Analysis
The Euro is in an uptrend against the Canadian dollar, and recently broke the all-important 1.40 handle. The upside move is very strong and there are chances of a move towards the 1.618 extension the last wave from the 1.4008 high to 1.3875 low.
If the EURCAD pair corrects lower, then it may find support near a couple of bullish trend lines formed on the hourly chart near 1.4020 and 1.3980.
The hourly RSI is currently well in the overbought levels, which means there is a chance of a tiny correction. One may consider buying in the short term as long as the pair is above 1.40.
German Import Price Index
Today in the Euro Zone, the German Import price index, which measures the change in prices for goods imported by Germany was released by Deutsche Bundesbank. The market was positioned for a rise of 0.1% in Nov 2016, compared with the same month a year ago.
However, the result was better, as there was an increase of 0.3% in Nov 2016. When we have a look at the monthly change, there was a rise of 0.7%. It was on the lower side when compared with the last increase of 0.9%.
Overall, the result was mixed, but the Euro may continue to gain traction against the CAD and could trade towards 1.4080.
