Daily Market Forecast By Capitalcore

EUR/CAD Chart Patterns and Analysis

The EUR/CAD pair represents the exchange rate between the Euro and the Canadian Dollar, and its performance is influenced by various economic indicators and central bank policies from both the Eurozone and Canada. Currently, traders are focusing on recent economic data releases and upcoming speeches that could impact market sentiment. Recent economic indicators show a mixed outlook for the Canadian economy. The IPPI (Industrial Product Price Index) reported a monthly change of -0.4%, which is better than the anticipated -0.8%. However, the RMPI (Raw Materials Price Index) experienced a more significant drop of -1.7%, against the expected -3.1%. These figures suggest that while there might be some stability in product prices, raw material costs are under pressure, potentially signaling concerns about inflationary pressures in Canada. On the Eurozone side, attention is drawn to the speech by ECB President Christine Lagarde, scheduled for 8:15 PM. Her statements could provide insights into the ECB's stance on interest rates and monetary policy, which is crucial for the Euro's strength against the CAD.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
In the EUR/CAD H4 chart, the pair is currently navigating within a defined range, with strong support levels at 1.49270, 1.49000, and 1.48750, while resistance levels are positioned at 1.50000, 1.50380, and 1.50525. The Relative Strength Index (RSI) is currently at 44.36, indicating a neutral to slightly bearish momentum, while the Stochastic Oscillator shows values of 46.10 and 38, suggesting potential oversold conditions.
Recently, the pair has faced resistance near the 1.50000 level, where price action has shown a series of bearish candles. If the price fails to break above the resistance, it may consolidate or retest lower support levels. A bullish move, however, requires a decisive break above 1.50000, potentially leading to a challenge of the upper resistance levels.
The overall mixed economic data, coupled with Lagarde's upcoming speech, may lead to increased volatility in the EUR/CAD pair, as traders react to the guidance and potential shifts in monetary policy direction. A hawkish tone from Lagarde could strengthen the Euro against the CAD, while dovish comments could weaken it, leading to a test of the identified support levels.

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

Capitalcore

 

GBPCAD Forecast: Impact of BOE Discussions Today

GBPCAD, a forex pair that tracks the British Pound (GBP) against the Canadian Dollar (CAD), has its daily news analysis influenced by both the UK’s economic developments and Canada’s energy-driven economy. Often referred to as a "cross pair," GBPCAD is particularly sensitive to events from both the Bank of England (BOE) and the Bank of Canada (BOC). Today’s focus includes BOE Deputy Governor Sarah Breeden's and Governor Andrew Bailey's participation in discussions at the IMF and World Bank meetings. Any hints on future monetary policy or rate decisions may provide volatility for the GBP, impacting the GBP/CAD forecast. In parallel, traders should keep an eye on Canada's monetary outlook, as any signals from the BOC can influence the CAD's value, affecting this pair’s fundamental outlook.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The GBP/CAD H4 chart indicates that the pair’s price action has shown some volatility recently. The Bollinger Bands reveal that the last five candles have transitioned from the lower band towards the middle band, suggesting a short-term bullish correction. Out of these candles, three were bullish, but the recent two candles have turned bearish after touching the middle band. This indicates a rejection from the middle band and the persistence of bearish pressure. The widening of the bands suggests increased GBPCAD volatility, while the RSI remains neutral, hovering around the 50-level, indicating indecision and potential further price action testing the middle Bollinger Band.

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

Capitalcore

 

EUR/USD H4 Chart Price Action Insights

The EUR/USD forex pair, often referred to as the "Fiber," is a major currency pair in the forex market, representing the exchange rate between the Euro and the US Dollar. Today, all eyes are on the upcoming Flash PMI reports for both the manufacturing and services sectors from the Eurozone and the US. A reading above 50 indicates expansion and is positive for the respective currency. If the Eurozone’s PMI surpasses forecasts, it could offer support for the euro; however, any contraction or weaker-than-expected figures might push the EURUSD price lower. Additionally, the upcoming IMF and BRICS meetings, as well as the Federal Reserve Bank of Cleveland’s statements, could introduce volatility. Market participants are likely to monitor these closely, as their outcomes may influence both EUR and USD price action.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The EUR/USD H4 chart displays a bearish trend, with the price moving consistently within the lower half of the Bollinger Bands, frequently touching the lower band, indicating sustained selling pressure. Over the past ten candles, three have shown bullish movement, with the last two being positive. However, the price remains at the 1 Fibonacci retracement level, oscillating between the 1 and 0.786 levels, suggesting a struggle to break out of the downward trend. The Williams %R indicator currently hovers in the oversold region, reflecting a bearish momentum that aligns with the overall trend. The next significant support level lies near the 0.786 Fibonacci level. A break below this could lead to further declines, while a break above the descending trend line may signal a reversal.

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

Capitalcore

 

Analyzing USD/CAD H4 Chart Ahead of U.S. Data

The USD/CAD currency pair, often called the "Loonie," is one of the major forex pairs traded globally, representing the value of the US dollar against the Canadian dollar. The USD/CAD fundamental analysis today is influenced by economic data from both countries, such as U.S. durable goods orders and Canadian retail sales figures, which are critical indicators of economic performance and consumer activity. Today’s Loonie news analysis has its focus on the U.S. durable goods data and the University of Michigan Consumer Sentiment, which may signal shifts in economic confidence and manufacturing trends. Strong U.S. data could boost the USD, pushing the pair higher, while disappointing figures may weaken the dollar, potentially leading to a decline in the USD/CAD exchange rate. On the Canadian side, traders will also monitor upcoming retail sales data and housing price indices. Strong retail sales figures could strengthen the CAD, as it would suggest robust consumer spending, the backbone of the Canadian economy. Conversely, if the data underperforms, it may weigh on the CAD, allowing USDCAD’s bullish trend to continue.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
On the USD/CAD H4 chart, the pair’s technical forecast today with confirmation from the Ichimoku Cloud and MACD indicators, reveals a nuanced picture. The Ichimoku Cloud shows that the price is currently above the cloud, indicating a bullish trend, but with recent candles hovering close to the cloud's upper boundary, suggesting a potential test of this support level. If the pair’s price keeps trading above the cloud, it could signify continued bullish momentum, while a break below might signal a bearish shift. The MACD indicator shows the histogram hovering near the zero line, with the MACD line and the signal line close to each other, indicating a lack of strong momentum and possible consolidation. If the MACD line crosses above the signal line and gains upward momentum, it could confirm a bullish continuation; otherwise, a downward cross may suggest increasing bearish pressure ahead.

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

Capitalcore