EUR/CAD drops like a rock at the time of writing. The price action signaled an overbought situation. Still, the Loonie needed strong support from the Canadian economy to be able to take the lead again.
Earlier, the Canadian Employment Change was reported at 153.7K far above 36.5K expected, while the Unemployment Rate dropped from 6.7% to 6.0%. On the other hand, the Euro-zone Retail Sales registered only a 0.2% growth versus 0.3% expected, while the Final Services PMI was reported at 55.9 points below 56.6 expected.
EUR/CAD Technical Analysis!
EUR/CAD failed to take out the 1.4550 level signaling that the upside movement is over. After dropping below the uptrend line, the pair turned to the upside to test and retest it. Now, it has dropped below 1.4455 making a new lower low.
The aggressive breakdown could signal more declines in the short term. Technically, the rate could also activate a Double Top pattern which could announce a larger downside movement. 1.4334 stands as a potential downside target if the rate continues to drop.
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