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EURCAD – Euro to Correct Further Lower Vs Canadian Dollar

Key Points

  • The Euro after trading towards 1.5200 against the Canadian Dollar struggled and moved down.
  • The EURCAD pair broke a bullish trend line at 1.5115 and may be approaching another at 1.5050 on the hourly chart.
  • Recently in Canada, the investment in foreign securities figure for Feb 2017 was released by the Statistics Canada.
  • The result was above the forecast, as the investment in foreign securities were $15.41B, more than the last revised $7.11B.

EURCAD Technical Analysis

The Euro was in a decent trend as it moved towards 1.5200 against the Canadian Dollar. Later, the EURCAD pair found resistance after trading as high as 1.5213, and started a short-term correction below 1.5200.

EURCAD Technical Analysis

The pair moved down, and broke the 21 hourly simple moving average, the 23.6% Fib retracement level of the last wave from the 1.4899 low to 1.5213 high, and a bullish trend line at 1.5115 on the hourly chart.

The pair is currently trading near the 38.2% Fib retracement level of the last wave from the 1.4899 low to 1.5213 high at 1.5090. It may correct a few pips higher, but most likely to face sellers on the upside near 1.5140 and the 21 hourly simple moving average. On the downside, the next support is at another trend line positioned around 1.5040.

Canadian Investment in Foreign Securities

Today in Canada, the Canadian investment in foreign securities figure for Feb 2017 was released by the Statistics Canada. The market was aligned for the investment to be around $10B, compared with the last $6.33B.

The outcome was above the forecast, as the investment in foreign securities were $15.41B. The last reading was also revised up to $7.11B. The report added that “Non-resident investors added $8.9 billion of Canadian bonds to their holdings in March. The investment activity was mainly in corporate bonds, as foreign investors reduced their exposure to government bonds”.

Overall, the EURCAD may continue to correct lower towards the 1.5050 or 1.5020 support area.

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