- The Euro recently traded as high as 1.4628 against the Canadian dollar where the upside stalled.
- There is a flag pattern forming on the hourly chart of the EURCAD pair, which can provide us the next break.
- Today in the Euro Zone, the French Industrial Output was released by INSEE.
- There was a decline of 0.8% in June 2016, whereas the market was expecting a rise of 0.2%.
The Euro after trading as low as 1.4475 against the Canadian dollar corrected higher. It traded as high as 1.4628 where it found sellers. Currently, the EURCAD pair is trading in a descending channel formed on the hourly chart, which can be seen as a flag pattern.
However, the pair is below 21 hourly simple moving average, which presents a risk of a downside break going forward.
On the downside, a break of the channel support trend line could take the pair towards the last swing low.
French Industrial Output
Earlier today during the London session, the French Industrial Output, which shows the volume of production of French industries such as factories and manufacturing was released by INSEE.
The forecast was slated for a rise of 0.2% in June 2016, compared with the previous month. However, the result was lower, as there was a decline of 0.8%. The report stated that the “Output decreased sharply in the manufacture of food products and beverages (-2.3%), and tumbled in the manufacture of coke and refined petroleum products (-11.7%). It was stable in “other manufacturing”. Conversely, output rose in the manufacture of transport equipment (+1.7%) and to a lesser extent in the manufacture of machinery and equipment goods (+0.5%) and in mining and quarrying; energy; water supply (+0.3%)”.
The Euro is currently under a bearish pressure, and it looks like it may break lower to test 1.4500.