Key Points
- The Euro enjoyed a nice upside ride vs the Canadian dollar, and it looks buy dips in the near term.
- There is a bullish trend line formed on the hourly chart of the EURCAD pair, which can be seen as a support area.
- The German Factory orders released by the Deutsche Bundesbank posted a decline of 0.5% in April 2016.
- In terms of the monthly change, there was a decrease of 2%, whereas the forecast was -0.6%.
Technical Analysis
The Euro looks like in an uptrend vs the Canadian Dollar, and it may remain in the short term. The EURCAD pair traded as high as 1.4726 recently where it found offers and started to trade lower. There is a bullish trend line formed on the hourly chart, which can be considered as a buying zone if the Euro moves down.
The pair is also well above the 100 and 50 hourly simple moving average, suggesting that the Euro buyers are in control at the moment.
One may consider buying near the 100 hourly SMA as long as EURCAD is above the trend line support.
German Factory Orders
The German Factory orders data report was released by the Deutsche Bundesbank today during the European session. The market was expecting the orders that includes shipments, inventories, and new and unfilled orders to decrease by 0.6% in April 2016, compared with the previous month. However, the outcome was disappointing, as there was a decline of 2%.
Moreover, in terms of the yearly change, the German Factory orders posted a decline of 0.5% in April 2016, compared with the same month a year ago. Overall, the report was negative, as currently weighing on the Euro and its market sentiment.
If the current trend continues, there is a chance of a dip towards the highlighted trend line and support area in EURCAD where the Euro bulls may appear.
