Key Points
- The Euro recently corrected lower towards the 1.4020 support against the Canadian dollar.
- The EURCAD pair is currently finding support near a broken bearish trend line on the hourly chart at 1.4020.
- Today in the Euro Zone, the German Industrial Production for Dec 2016 was released by the Statistisches Bundesamt Deutschland.
- The result was on the lower side, as there was a decline of 3% in Dec 2016, compared with the forecast of +0.3%.
EURCAD Technical Analysis
The Euro after trading as low as 1.3969 against the Canadian dollar gained bids and started trading higher. During the upside move, the EURCAD pair broke the 1.40 resistance, 21 hourly simple moving average, and a bearish trend line on the hourly chart at 1.4010.
The pair traded as high as 1.4101 before starting a correction, and currently finding support near a broken bearish trend line at 1.4020.
Moreover, the 21 hourly SMA is also acting as a support at 1.4020. So, there are high chances of an upside move back towards 1.4100 in the short term.
German Industrial Production
Today during the London session, the German Industrial Production, which measures outputs of the German factories and mines for Dec 2016 was released by the Statistisches Bundesamt Deutschland. The market was expecting an increase of 0.3% in Dec 2016, compared with the previous month.
However, the result on the lower side, as there was a decline of 3% in Dec 2016. Looking at the yearly change, there was a decline of 0.7% in Dec 2016, compared with the same month a year ago. It was lower when compared with the last revised rise of 2.3%.
However, the Euro looks stable, and may climb higher towards 1.4100 against the Canadian dollar, as long as the 1.4000 support is intact.
