EUR/CAD Drops to 1.4250, Fresh 2016 Lows
With Canadian monthly retail sales data for Feb. beating expectations and rising inflation data, the EUR/CAD pair fell sharply to 1.4250, hitting fresh 2016 lows.
Better-than-expected economic data lifts loonie
Report
on Feb. 2016 Canadian retails sales showed sales rising by 0.4% vs
expectations of a drop of 0.8% m/m. On the other hand, CPI during March
rose 1.3% y/y vs consensus estimate of 1.2% rise.
Technical levels to watch
Before
the release, EUR/CAD mad a failed attempt to move back into positive
territory but positive economic data dragged the pair to session low.
From current levels, the pair seems to extend its downward trajectory
towards 1.4200 round figure mark, which if broken exposes Dec. 2015 lows
support near 1.4025 area.
Meanwhile on the upside, any attempts
of recovery might confront immediate resistance near 1.4295-1.4300 round
figure mark. Even if the pair manages to clear this immediate
resistance, further recovery might now stall near 1.4365-70 resistance
zone.
