Chapter 50 EURCAD Uptrend supported by CPI
17/01/2023
Summary
The CPI inflation rate drives the market
Fundamental analysis
The Canadian dollar Inflation rate CPI Has been released with negative results It was lower than the previous month and the expectation as well at 6.3%, On the other hand, tomorrow we have in the economic calendar inflation rate CPI in the Europe zone with Positive expectations for the euro.
Canada CPI YoY (Dec)
Previous 6.8%
Actual 6.3%
Eurozone Core CPI Final YoY (Dec)
Previous 6.6%
Expected —----
Eurozone HICP Final YoY
Previous 10.1%
Expected 9.2%
Technical analysis
We can see in the four-hour diagram chart, That the Market is trending up by creating a higher high and higher low Market price is now at 1.45426 we expect the market will pull back To the previous demand zone at 1.44930 to create a new higher low and will continue climbing up to the oldest support zone at 1.46429 to make a new higher high with 20 moving average pointing up.
Trading Recommendation
Trading Direction: Long
Entry Price:1.44930
Target Price:1.46429
Stop Loss: 1.44075
