FxWirePro: EUR/CAD Near-Term Outlook

EUR/CAD chart - Trading View 

EUR/CAD was trading 0.31% lower on the day at 1.5280 at around 08:45 GMT.

The pair is extending weakness for the 2nd straight session, prices have slipped below 21-EMA.

The single currency under pressure across the board after European flash PMIs came in weaker-than-expected.

The Eurozone manufacturing PMI hit an all-time low of  33.6 in April vs. 39.2 expected and 44.5 last while the Services PMI hit a record low of 11.7 in the reported month vs. 23.8 expected and 26.4 last.

The IHS Markit Eurozone PMI Composite slumped to a record low of 13.5 in April vs. 25.7 expected.

PMIs in Germany, France and the broader Euroland came in well short of expectations for the month of April. 

Weak readings reflected the continuation of the coronavirus crisis and the initial effects of the lockdown.

Adding to the poor morale in Germany was the GfK’s Consumer Climate which plummeted to -23.4 for the month of May (from April’s 2.7).

The pair has slipped below 200H MA and is likely to test 50-DMA at 1.5164. Break below cloud will add to further bearish pressures.

'The pair has till date failed to capitalize on the 'Golden Cross' formation (confirmed on 18th March). Downside may be limited as a result.

However, breach at 50-DMA support will negate near-term upside and break below cloud will open downside.

Support levels - 1.5164 (50-DMA), 1.5081 (Lower BB), 1.4979 (110-EMA)

Resistance levels - 1.5302 (200H MA), 1.5323 (5-DMA), 1.5342 (20-DMA)