The euro has recently seen a decline from its previous highs, facing strong resistance at the 1.12000 level. After two unsuccessful attempts to break through this resistance, the price has corrected to 1.1100 and seems to be range-bound between 1.1200-1.1090. A potential downward correction could occur if the price breaks and holds below 1.1090, leading to a decline towards 1.1050-1.0980. On the other hand, if the price consolidates above 1.1200, we could see the upward momentum resume, with a rise towards 1.1400-1.1300.
Technical analysis of EUR/USD suggests a possible deeper downward retracement, as indicated by the formation of a “bearish harami” pattern on the daily timeframe. Some key fundamental factors that could influence the pair’s price include a speech by European Central Bank member Isabel Schnabel, Eurozone Consumer Confidence Index release, German Consumer Price Index (CPI) release, and US Q2 GDP data release.
The EUR/CAD pair has also been experiencing range-bound trading within a wider corridor. The price surged two weeks ago to test key resistance at 1.5200 but failed to consolidate above it on the first attempt, leading to a drop to 1.4970. Despite a second attempt by buyers to break through 1.5200 last week, the price remains within the range of 1.5220-1.4970. A move below 1.4970 could trigger a downward movement towards 1.4880, while consolidation above 1.5200 may lead to an upward impulse towards 1.5600-1.5400.
Key events to watch for the EUR/CAD pair include the German Unemployment Rate release and Canadian GDP release scheduled for tomorrow. These events could potentially impact the pair’s price movement in the forex market.
Both the EUR/USD and EUR/CAD pairs are currently facing important resistance levels and are exhibiting range-bound trading patterns. Traders should closely monitor key levels and upcoming events to identify potential trading opportunities in these currency pairs. It is essential to conduct thorough technical and fundamental analysis before making any trading decisions to navigate the volatility of the forex market effectively.
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