11 Jul 2013
EUR/CAD surrenders grip on 1.3600 level
FXstreet.com (New York) - The EUR/CAD technical cross has moved below the 1.3600 level Thursday, having sunk on the publication of Canadian data during US trading.
Canadian data weakens pair
In Canada, the New Housing Price Index (YoY) May, came in at +1.8%, compared to a figure of only +2.0% previously. Moreover, the New Housing Price Index (MoM) climbed only +0.1% in May, missing expectations of +0.2%. In these moments, the EUR/CAD is now trading at 1.3577 during US trading, incurring a minor loss of -0.03% Thursday.
EUR/CAD strategic bias
According to the TD Securities Team, “The EUR/CAD has steadied around the 50% retracement support of the 1.30/1.38 rally. However, we think the strength of the turn lower in the cross over the past three weeks signals a propensity to correct more of the May/June gains. The market closed below the 40-day MA yesterday, a further short-term strike against the EUR—and remains below there today. We think 1.3520/30 should now provide firm overhead resistance for the cross near-term. We look for the cross to drop back to the 1.33 area.”
Canadian data weakens pair
In Canada, the New Housing Price Index (YoY) May, came in at +1.8%, compared to a figure of only +2.0% previously. Moreover, the New Housing Price Index (MoM) climbed only +0.1% in May, missing expectations of +0.2%. In these moments, the EUR/CAD is now trading at 1.3577 during US trading, incurring a minor loss of -0.03% Thursday.
EUR/CAD strategic bias
According to the TD Securities Team, “The EUR/CAD has steadied around the 50% retracement support of the 1.30/1.38 rally. However, we think the strength of the turn lower in the cross over the past three weeks signals a propensity to correct more of the May/June gains. The market closed below the 40-day MA yesterday, a further short-term strike against the EUR—and remains below there today. We think 1.3520/30 should now provide firm overhead resistance for the cross near-term. We look for the cross to drop back to the 1.33 area.”