Key Points
- The Euro crashed to 1.4175 against the Canadian Dollar before finding buyers.
- The EURCAD pair is currently recovering and following an ascending channel pattern with support at 1.4310 on the hourly chart.
- Today in the Euro Zone, the German Factory orders report for Feb 2017 was released by the Deutsche Bundesbank.
- The outcome was lower than the forecast, as there was an increase of 3.4% in orders in Feb 2017, less than the forecast of 3.5%.
EURCAD Technical Analysis
The Euro was in a solid downtrend against the Canadian dollar until it found support at 1.4175. The EURCAD pair started moving higher, and traded above 1.4250. And, now it is following an ascending channel pattern with support at 1.4310 on the hourly chart.
The pair has already moved above the 21 hourly simple moving average, and 23.6% Fib retracement level of the last decline from the 1.4599 high to 1.4175 low.
So, there is a chance of the pair extending gains towards the 1.43870 level or towards the 50% Fib retracement level of the last decline from the 1.4599 high to 1.4175 low.
German Factory Orders
Recently in the Euro Zone, the German Factory orders report for Feb 2017 was released by the Deutsche Bundesbank. The forecast was lined up for an increase of 3.5% in Feb 2017, compared with the previous month.
However, the result was lower than the forecast, as there was an increase of 3.4% in orders in Feb 2017. It was a lot higher, compared with the last decline of 6.8% (revised from -7.4%). In terms of the yearly change, there was an increase of 4.6% in orders in Feb 2017, a lot more than the last -0.8%. So, the result was overall positive, and may help the Euro in the near term.
Overall, the EURCAD pair might head higher towards 1.4390, and remains supported on the downside near 1.4310.
