Jan. 31, 2023
Late into the session, EUR/CAD loses 72 pips (0.5%), currently trading at 1.4448.
Data for Germany Unemployment Change published today at 08:55 UTC came out at -15,000, beating projections of 5,000 and showing improvement over the preceding figure of -13,000.
Meanwhile, Canada's GDP published today at 13:30 UTC came out at 0.1%. The fresh reading lived up to analyst expectations as well as matching the previous month's figure. Italy 10-Year BTP Auction released today at 10:10 UTC with a figure of 4.28, while the previous figure was 3.96.
Trend analysis indicates that EUR/CAD made an initial break below its 21 day Simple Moving Average at 1.4471, a possible indication of a forthcoming negative trend. After descending below strong Fibonacci support at 1.4512, market bears have earmarked 1.4387 as the next downside target. Asset volatility analysis shows that EUR/CAD's lower Bollinger Band® is at 1.4377, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Following today's trading session, chart analysis suggests EUR/CAD could begin to recover as it approaches significant support, now 1 pips away from 1.4447. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates EUR/CAD will remain range-bound for the immediate future.
In the meantime, negative performances are also seen in other pairs as USD/CHF closed at 0.9159 (down 0.98%). After ending yesterday's session at 1.653, GBP/CAD lost 142 pips and is trading around 1.6388. USD/CAD is down to 1.33, losing 84 pips, after closing at 1.3385 in the preceding trading session.
Furthermore, Euro Zone Consumer Price Index figure is projected at 9%. It previously stood at 9.2%; data will be released tomorrow at 10:00 UTC. Euro Zone ECB Press Conference scheduled to come out tomorrow at 13:45 UTC. Italy Consumer Price Index figure is projected at 0.1%. It previously stood at 0.3%; data will be released tomorrow at 10:00 UTC.
EUR/CAD is now trading 0.63% away from its significant high of 1.4611 first tested 6 days ago.