- Euro traded down against the Canadian Dollar recently, and moving closer to a major support area.
- There is a monster bullish trend line formed on the hourly chart, which may provide support to the EURCAD pair in the short term.
- German Industrial Production released by the Statistisches Bundesamt Deutschland posted a decline of 1.2% in December 2015, whereas the market was expecting an increase.
- The yearly change also posted a decline of 2.2%, more than the last decrease of 0.3%.
The Euro after surging close to the 1.5660 level against the Canadian Dollar found sellers and started to move down. The EURCAD pair is currently testing the 50 hourly simple moving average, and if it breaks then the pair may head towards a monster bullish trend line formed on the hourly chart.
The highlighted trend line and support area holds a lot of importance for the pair, and if buyers fail to hold it, then the pair could set up for more losses.
On the upside, the most important resistance is near the 1.5580 level.
Today, the German Industrial Production, which measures outputs of the German factories and mines was released by the Statistisches Bundesamt Deutschland. The market was expecting it to increase by 0.4% in December 2015, compared with the preceding month. However, the report was not impressive, as the German IP posted a decline of 1.2% in December 2015.
Looking at the yearly change, there was a decrease of 2.2% in December 2015, which was more than the last decline of 0.3%.
The EURCAD pair may decline further in the short term, but as long as it is above the trend line and support area, there are chances of it recovering.