Key Points
- The Euro moved towards 1.4900 against the Canadian Dollar before correcting lower.
- There is a critical contracting triangle pattern with support at 1.4780 formed on the hourly chart of EURCAD.
- Today in the Euro Zone, the French Gross Domestic Product for Q1 2017 (Preliminary) was released by INSEE.
- The outcome was below the forecast, as there was an increase of 0.3% in the GDP, less than the last revised 0.5%.
EURCAD Technical Analysis
The Euro moved higher this week against the Canadian Dollar and traded as high as 1.4907. Later, the EURCAD pair started a correction, and tested the 1.4750 support zone. At the moment, the pair is trading inside a critical contracting triangle pattern with support at 1.4780 on the hourly chart.
It is well above the 38.2% Fib retracement level of the last decline from the 1.4892 high to 1.4754 low, which is a positive sign.
The pair is also above the 21 hourly simple moving average at 1.4810, but struggling to remain above the 50% Fib retracement level of the last decline from the 1.4892 high to 1.4754 low at 1.4825.
French Gross Domestic Product
Recently in the Euro Zone, the French Gross Domestic Product for Q1 2017 (Preliminary) was released by INSEE. The forecast was lined up for the French Gross Domestic Product to grow at the 0.4% rate in Q1 2017 (Preliminary), compared with the previous quarter.
The result was below the forecast, as there was an increase of 0.3% in the GDP, less than the last revised 0.5%. The report stated that “In Q1 2017, GDP in volume terms slowed down: +0.3%, after +0.5% in Q4 2016. Households’ consumption expenditure stalled (+0.1% after +0.6%). However, total gross fixed capital formation (GFCF) accelerated again (+0.9% after +0.6%)”.
Overall, the EURCAD may move down a few pips towards 1.4800-1.4790, but remains supported in the near term.
