EUR/CAD is currently residing inside a corrective volatile structure with a bearish squeeze above the 1.4500 support level. CAD has been quite weak on the back of recent economic reports which led to gains on the EUR side, but EUR gains were not quite impulsive in nature. It signals that CAD is still setting the tone for the pair. Today, the market is going to trade with higher volatile for CAD as Employment Change report is going to be published which is expected to show a decrease to 13.9k from the previous figure of 22.2k and Unemployment Rate is expected to show an increase to 6.3% from the previous value of 6.2%. Along with these high impact reports, CAD Ivery PMI report is also going to be published which is expected to show a slight decrease to 56.0 from the previous figure of 56.3. On the EUR side, today German Factory Order report was published with a significant growth to 3.6% from the previous negative value of -0.4% which was expected to be at 0.7%, French Govt Budget Balance is expected to show an increase from the previous negative figure of -83.8B, French Trade Balance is expected to show less deficit at -5.4B from the previous figure of -6.0B, and Italian Retail Sales report is expected to show an increase to 0.2% from the previous negative value of -0.2%. To sum up, EUR will be influenced by a series of economic reports to be published yet. However, Canada's economic reports are expected to inject a good amount of volatility in the market. If Canada's reports are positive, then the pair will trade under further bearish pressure in the short and medium terms. Overall, CAD is expected to have an upper hand over EUR in the coming days.
Now let us look at the technical chart. The price is currently residing just below the trendline resistance which is indicating the bearish force in the pair. Amid higher volatility today, a daily close above the trendline or below the 1.4500 support level will determine a further directional movement in this pair. Currently the price is quite bearish in nature which is expected to push the price lower below the 1.4500 level in the coming days.
