EURCAD Analysis Amid Key Economic Releases

EURCAD Fundamental Forecast: Impact of Ivey PMI and ECB Lagarde Speech

The EUR/CAD forex pair, often referred to as the “Loonie-Euro Pair,” represents the exchange rate between the Euro (EUR) and the Canadian Dollar (CAD). The pair combines the world’s second most traded currency, the Euro, with the CAD, a major currency highly influenced by commodities, particularly oil. The EUR/CAD fundamental price movements are sensitive to both European economic indicators and global commodity market shifts.

Today, the EUR faces potential volatility as traders monitor the release of the Producer Price Index (PPI) and a speech by ECB President Christine Lagarde. The PPI will shed light on inflationary pressures, which could influence the ECB’s monetary policy. On the Canadian side, markets await the Ivey PMI data and a speech from BOC Senior Deputy Governor Carolyn Rogers. Should the Ivey PMI exceed expectations, it could bolster the CAD, especially if coupled with hawkish remarks from Rogers. Conversely, any dovish stance from the ECB or soft economic data could weaken the Euro, amplifying volatility for EURCAD.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.

Analyzing the EURCAD H4 chart, we see that the Ichimoku Cloud indicates a supportive structure, as the price remains above the cloud, suggesting a potential continuation of the pair’s bullish trend if support holds. The leading span of the cloud also demonstrates an upward slant, highlighting a moderately bullish sentiment. However, recent candlestick behavior has shown mixed outcomes: several bullish candles pushing upward have been followed by bearish candles that display some hesitation. Volume analysis reveals that trading activity has increased noticeably over the past sessions, reflecting growing market interest. The combination of a strong volume presence with the EUR/CAD price action continuously remaining above the Ichimoku Cloud signals that buyers may still have some control, but the current indecisive candles warrant caution, as a break below the cloud could signal a shift to bearish momentum.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.