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Market Analysis

Home » Featured » EURCAD – Breakdown Looks Like Real Deal

EURCAD – Breakdown Looks Like Real Deal

Posted by FXTimes in Featured - December 3rd, 2015 12:37 pm GMT

euro EURUSD eurjpy eurcad

Key Points

  • Euro continued to struggle not only against the US Dollar, but against some other major currencies as well like the Canadian Dollar.
  • EURCAD pair broke the last low of 1.4060 and looks set for more losses in the near term.
  • The Euro Zone PMI service released by the Markit Economics posted a decline from the last reading of 54.6 to 54.2 in November 2015.
  • The Euro Zone Retail Sales released by the Eurostat posted a decline of 0.1% in October 2015, whereas the forecast was a 0.2% rise.

Technical Analysis

The upside move in the EURCAD pair was stalled once again around 1.4200 area. There was a confluence area around the stated level, as the 100 simple moving average and a bearish trend line on the 4-hours chart acted as a barrier.

EURCAD

The pair has already reversed most of its gains and broke the last swing low of 1.4060. There is currently a lot of bearish pressure on the pair that may take it lower.

The 4H RSI is below the 50 level, calling for more losses in the short term.

Euro Zone Services PMI

Today, the PMI service, which is an indicator of the economic situation in the Euro Zone services sector was released by the Markit Economics. The market was expecting no change in the PMI in November 2015. However, the outcome was disappointing, as there was a decrease from 54.6 to 54.2.

Commenting on the report, the Chief Economist at Markit, Chris Williamson, stated that “With the November PMI data we now have a reliable indication of fourth quarter economic growth, and the upturn in the PMI points to euro area GDP expanding by 0.4% on a quarterly basis”.

Overall, there was nothing major for bulls, and as a result, the EURUSD pair moved lower and took other Euro pairs lower as well. More losses in EURCAD are possible if sellers remain in control.

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