The euro has recently faced resistance at the 1.1200 level, resulting in a correction down to 1.1100. This correction has established a range-bound trading pattern between 1.1200 and 1.1090. If the price breaks below 1.1090, we could see a downward correction towards 1.1050-1.0980. Conversely, if the price consolidates above 1.1200, there is potential for the upward momentum to resume, with a target of 1.1400-1.1300.
EUR/CAD
Similarly, the EUR/CAD pair has been trading within a wider corridor, with resistance at 1.5200 and support at 1.4970. A break below 1.4970 could lead to a continuation of the downward movement towards 1.4880. On the other hand, consolidation above 1.5200 could trigger a new upward impulse towards 1.5600-1.5400. The pair is currently at the lower boundary of the range between 1.5220-1.4970.
There are several key fundamental factors that could impact the trading scenarios for both pairs. These include upcoming events such as:
– Speech by European Central Bank member Isabel Schnabel
– Eurozone Consumer Confidence Index release
– German Consumer Price Index (CPI) release
– US Q2 GDP data release
– German Unemployment Rate release
– Canadian GDP release
The technical analysis of both pairs suggests the potential for further movement based on current patterns. The formation of a “bearish harami” pattern on the daily timeframe of EUR/USD indicates a possible downward retracement. Meanwhile, EUR/CAD’s failure to break through key resistance levels could signal a continuation of the current range-bound trading pattern.
Traders should closely monitor key support and resistance levels, as well as upcoming fundamental events, to make informed decisions on their trading strategies for EUR/USD and EUR/CAD. The analysis provided here is based on current market conditions and may change as new information becomes available.
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