- Euro was down and out against the Canadian Dollar, and every correction was sold.
- The EURCAD pair is trading above a bullish trend line formed on the hourly chart, which is acting as a support area.
- On the upside, the 50 hourly simple moving average is stalling gains and pushing the pair down.
- Today, the Euro Zone Sentix Investor Confidence index released by the Sentix GmbH posted a decline from the last reading of 6 to 5.5 in March 2016.
The Euro struggled today against the Canadian Dollar, as the latter one gained traction. The EURCAD pair traded down and tested a bullish trend line formed on the hourly chart, which stalled the downside break in the short term.
The pair is correcting higher, but may face selling pressure near the 50 hourly simple moving average, coinciding with the 38.2% Fib retracement level of the last drop from the 1.4814 high to 1.4598 low.
On the downside, the most important support is the trend line, and if it is broken a move towards 1.4520 is possible.
Euro Zone Sentix Investor Confidence
Today, the Euro Zone Sentix Investor Confidence, which is a monthly survey which shows the market opinion about the current economic situation and the expectations for the next semester was released by the Sentix GmbH. The outcome was disappointing, as there was a decline noted from the last reading of 6.0 to 5.5 in March 2016. The market on the other hand was expecting a rise to 8.0.
The report added that the “overall sentix Economic Index for the Eurozone stagnates at 5.5 points in March. Reasons for Eurozone’s malaise are visible in investor’s assessment of the current situation. The value drops by about 2.2 points, below the April 2015 level”.
Overall, the Euro may trade lower against the Canadian dollar, and one must keep an eye on the trend line support for more losses or a bounce.