Key Points
- The Euro moved higher consistently against the Canadian dollar and closed above 1.4200.
- However, the EURCAD pair is facing a monster resistance near 1.4300-1.4400 on the daily chart.
- In Canada recently, the Consumer Price Index (CPI) released by the Statistics Canada.
- The outcome was disappointing, as there was a decline of 0.2% in Dec 2016, compared with the 0% forecast.
EURCAD Technical Analysis
The Euro kept climbing against the Canadian dollar and moved above the 1.4000 and 1.4200 resistance levels. However, the EURCAD pair is facing a monster resistance near 1.4300-1.4400 on the daily chart, which may pause the current upside move.
The pair is well above the 100-day simple moving average, but the highlighted resistance may play a crucial role, as it also coincides with the 38.2% Fib retracement level of the last decline from the 1.5281 high to 1.3820 low.
Overall, the EURCAD pair is in an uptrend, but buyers need to watch for the 1.4300-1.4400 resistance area carefully going forward.
Canadian Consumer Price Index
Recently, there was a major release in Canada, as the Consumer Price Index (CPI) was published by the Statistics Canada. The market was expecting no change in the CPI in Dec 2016, compared with Nov 2016.
However, the result was disappointing, as there was a decline of 0.2% in Dec 2016. The yearly change was also lower than the forecast, and posted a rise of 1.5% in Dec 2016, compared with Dec 2015. The report stated that “Prices were up in seven of the eight major components in the 12 months to December, with the transportation and shelter indexes contributing the most to the year-over-year rise in the CPI”.
Overall, there was an increase in the bearish pressure on the Canadian dollar, but the EURCAD pair faces an uphill task near 1.4300-1.4400 in the near term.
