EUR/CAD has been non-volatile with the gains after breaking above the 1.5350 price area which is expected to be retested in the coming days. Due to recent worse economic reports from Canada, EUR has been the dominant currency in the pair with mixed economic reports. The weakness of CAD emerged, having minimum development after the recent rate hike. Today the German Final GDP report is going to be published which is expected to be unchanged at 0.6%. The Final CPI and Final Core CPI are also expected to be unchanged at 1.3% and 1.0% correspondingly. Though the economic reports are expected to be unchanged, any positive or negative outcome of the reports can impact the growth of EUR in the coming days. On the other hand, today CAD CPI report is going to be published which is expected to increase to 0.4% from the previous negative value of -0.4%. The Common CPI is expected to increase from the previous value of 1.6%, Median CPI is expected to increase from the previous value of 1.9%, Trimmed CPI is expected to increase from 1.9% and Core CPI is also expected to be have better result increasing from the previous negative value of -0.5%. As of the current scenario, CAD is expected to have better outcome today whereas EUR is expected to be unchanged. The indecisive economic reports from Europe are likely to result in the euro losing some grounds for a certain period which can be regained in the longer term. To sum up, CAD is expected to take the lead for a certain period before EUR takes the lead again.
Now let us look at the technical view. The price has been non-volatile with the bullish gains and the Bearish Divergence has been spotted. As of the current scenario, the price is expected to retrace towards 1.5350 in the coming days before showing any bullish momentum in the pair. The lower volume in the bullish gains recently indicates the weakness of bulls which is expected to lead to bearish pressure in the pair. As the price remains above 1.5350, the bullish bias is expected to continue further but with certain retrace.
The material has been provided by InstaForex Company – www.instaforex.com