Key Points
- The Euro remained higher against the Canadian Dollar with support on the downside at 1.4200.
- There is a breakout consolidation formed on the hourly chart of EURCAD, which could ignite the next move in the pair.
- Today in the Euro Zone, the French Nonfarm Payrolls (QoQ) report was released by INSEE.
- The result was in line with the forecast, as there was an increase of 0.3% in Q3 2016.
EURCAD Technical Analysis
The Euro recently traded towards 1.4300 against the Canadian dollar where it found resistance and started correcting lower. There is a breakout consolidation formed on the hourly chart of EURCAD, which may act as a catalyst for the next move in the near term.
The pair is above the 21 hourly simple moving average, and may be heading towards the triangle resistance area at 1.4280.
If there is a dip, then one may consider buying as long as the pair is above the triangle support area at 1.4210.
French Nonfarm Payrolls
Today in the Euro Zone, the Nonfarm Payrolls (QoQ), which refers to all sectors except agriculture, public administration, education, health and social services was released by INSEE.
The market was expecting a change of 0.3% in Q3 2016, and the result was also in line with the forecast. The report stated that “In Q3 2016, payroll employment in the non-farm market sectors continued to increase (+51,200 jobs, that is 0.3%, after +29,400 jobs in the previous quarter). This slight acceleration compared to the second quarter is due to temporary employment (+29,500 jobs, i.e. +5.0%, after −200 jobs in Q2 2016). Year-on-year, the principally market sectors created 178,700 net jobs (+1.1%)”.
Overall, the report was positive, and the market sentiment is favoring for an upside move in EURCAD at least towards 1.4730.
