EUR/CAD Drops to 1.4250, Fresh 2016 Lows

EUR/CAD Drops to 1.4250, Fresh 2016 Lows

22 April 2016, 15:29
Roberto Jacobs

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.


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