The euro has faced strong resistance at the 1.12000 level, leading to a correction down to 1.1100. This level has previously acted as support for the pair, creating a range-bound trading pattern between 1.1200-1.1090. The upcoming trading sessions hold the potential for different scenarios based on key technical and fundamental factors.
If the price breaks and holds below 1.1090, a downward correction towards 1.1050-1.0980 could unfold. On the other hand, consolidating above 1.1200 may lead to a continuation of the upward momentum, targeting levels around 1.1400-1.1300. Technical analysis indicates a potential for a deeper retracement, as a “bearish harami” pattern has formed on the daily timeframe.
Tomorrow’s schedule includes a speech by European Central Bank member Isabel Schnabel at 10:15 (GMT +3:00), Eurozone Consumer Confidence Index release at 12:00 (GMT +3:00), German Consumer Price Index (CPI) release at 15:30 (GMT +3:00), and US Q2 GDP data release at 15:30 (GMT +3:00).
Technical analysis of the EUR/CAD pair shows a wider corridor for range-bound trading. Despite attempts to break key resistance at 1.5200, the pair has been consolidating within a range of 1.5220-1.4970 for the past four weeks. A move below 1.4970 could trigger a downward movement towards 1.4880, while consolidation above 1.5200 may lead to an upward impulse targeting 1.5600-1.5400.
Tomorrow’s calendar includes the German Unemployment Rate release at 10:55 (GMT +3:00) and Canadian GDP release at 15:30 (GMT +3:00). These events could potentially impact the trading direction of the EUR/CAD pair.
Both the EUR/USD and EUR/CAD currency pairs are experiencing range-bound trading patterns with key resistance and support levels. Traders should closely monitor technical indicators and upcoming fundamental events to gauge potential trading opportunities.