Key Points
- The Euro enjoyed a lot of gains against the Canadian dollar lately, and it looks poised for more gains.
- There is a monster channel pattern formed on the hourly chart of the EURCAD pair, which is acting as a catalyst for the upside move.
- The Spanish Gross Domestic Product released by the National Institute of Statistics posted a rise of 3.2% in Q2 2016, more than the forecast.
- In terms of the quarterly change, there was a rise of 0.7% in Q2 2016, which was in line with the forecast.
Technical Analysis
The Euro continued to surge higher against the Canadian dollar, as it closed above the 1.4600 resistance area. Currently, the EURCAD pair is following a monster channel pattern formed on the hourly chart, which is pushing it higher.
The pair is well above the 21 hourly simple moving average, and looks set for a ride higher in the near term.
On the upside, a break above the channel resistance area could take the pair towards 1.4660-1.4700.
Spanish Gross Domestic Product
Earlier today during the European session, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by Spain was released by the National Institute of Statistics.
The forecast was slated for a rise of 3.1% in the GDP in Q2 2016, compared with the same month a year ago. However, the rise was more than the forecast, as the GDP increased by 3.2%. In terms of the quarterly change, there was a growth of 0.7% in Q2 2016, which was as per the forecast.
Overall, the outcome was positive. There were a few other releases as well, which helped the Euro to gain traction. So, the EURCAD pair may gain pace further and trade higher in the near term.
