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EUR CAD Technical Analysis - EUR CAD Trading: 2023-06-08
EUR/CAD Technical Analysis Summary
Below 1.426
Sell Stop
Above 1.476
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| MA(200) | Sell |
| Fractals | Sell |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
EUR/CAD Chart Analysis
EUR/CAD Technical Analysis
On the daily timeframe, EURCAD: D1 has broken below the 200-day moving average and the support line of the uptrend. Several technical analysis indicators have generated signals for further downward movement. We do not exclude a bearish trend if EURCAD: D1 falls below the last minimum at 1.426. This level can be used as an entry point. The initial risk limitation could be set above the 200-day moving average, the last two fractal highs, and the Parabolic signal at 1.476. After opening a pending order, we move the stop-loss along with the Bollinger Bands and Parabolic signals to the next fractal high. This way, we improve the potential profit/loss ratio in our favor. The most cautious traders, after entering the trade, can switch to the four-hour chart and adjust the stop-loss by trailing it in the direction of movement. If the price surpasses the stop level (1.476) without activating the order (1.426), it is recommended to cancel the order as internal changes are occurring in the market that were not anticipated.
Fundamental Analysis of Forex - EUR/CAD
Bank of Canada (BoC) unexpectedly raised the interest rate. Will the decline in EURCAD quotes continue?
The Bank of Canada (BoC) raised the interest rate to a 22-year high of 4.75% from 4.5%. Now it exceeds Canadian inflation, which stood at 4.4% YoY in April. Data for May will be released on June 27th. An additional positive factor could be Canada's strong trade surplus in April, reaching its highest level since July 2022 at $1.94 billion. On June 9th, the Canadian labor market review will be published, which could also be positive. On the other hand, economic indicators in the Eurozone have recently appeared more negative. On June 8th, the final European Union Gross Domestic Product and Employment Change for the first quarter of 2023 will be published. On June 15th, the European Central Bank (ECB) will hold its meeting. It is currently difficult to say whether the ECB will raise its interest rate to 3.75%. Inflation in the EU was 6.1% YoY in May.
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