Chapter 5 Is EURCAD staying in range?
02/02/2023
Summary
The ECB interest rate decision leads the market.
Fundamental analysis
The fundamental view on this pair EURCAD shows positive news for the EURO and negative news for the CAD, the news released today for the EURO shows that the Interest rate decision has been raised to 4% which should be great for the EURO even though the figure was expected, On the other hand, The news for the Canadian dollar Building permits today it's come as an unexpected very negative result at -7.3%.
Eurozone ECB Interest rate decision
Previous 2.75%
Actual 3.25%
Canada Building Permits MoM
Previous 14.9%
Actual -7.3%
Technical analysis
In this 4-hour diagram chart, The market is trending in range, The price is now at 1.45445 after the pullback down, We expect the price will continue this range behaviour until the previous demand zone at 1.44445 from there we expect the price will bounce back up to the last supply zone at 1.46300.
Trading Recommendation
Trading Direction: Long
Entry Price: 1.44664
Target Price: 1.45864
Stop Loss: 1.44057
