EUR/CAD has been trading with a bullish bias recently that enables it to reach the edge of the resistance level of 1.4750. Recently, EUR has been quite strong in light of fresh economic reports. Besides, ECB President Draghi has been quite hawkish with the statements. Today, French Consumer Spending report was published with a decreased negative value at -0.3% from the previous positive value of 0.6% which was expected to be at 0.2%, French Prelim CPI was published with a decreased figure but better than expected at -0.1% from the previous value of 0.5% which was expected to be at -0.2%, German Unemployment Rate was published at -23k from the previous figure of -6k which was expected to show less deficit at -5k, CPI Flash Estimate was published unchanged at 1.5% which was expected to increase to 1.6%, and Core CPI Flash Estimate was published with a decrease to 1.1% which was expected to be unchanged at 1.2%. On the CAD side, today Canada’s GDP showed a decrease to 0.0% from the previous value of 0.3% which was expected to be at 0.1% and RMPI report was published with an increase to 1.0% from the previous value of -0.9% which was expected to be at 0.4%. As for the current scenario, EUR and CAD have been quite mixed amid the economic reports but a decrease in Canada’s GDP helped EUR to gain momentum and facilitate further gains in the upside.
Now let us look at the technical chart. The price is currently residing at the edge of resistance 1.4750 which is expected to break above. If the price remains above the dynamic level of 20 EMA, a pre-breakout of 20 EMA carry is likely to help the price to break exactly towards the nearest resistance at 1.4865 and later towards 1.50.