As we forecasted on July 1, the EUR/CAD did move further up once the price closed above the resistance zone near the 1.3970 level. In fact, since July 6, when the daily price closed above this level, it climbed nearly 480 pips and reached as high as 1.4492.
But, the bullish momentum was capped the resistance near 1.4450, and over the last three days the EUR/CAD price retraced back to the 1.4160 level, which is the high from June 4, 2015.
Yesterday, a major Eurozone fundamental indicator data was released by the Spanish National Statistics Institute, the year-over-year Spanish Flash CPI. Although the forecast was set at 0.1% inflation over the past 12 months, and it came out at 0.0%, binary options traders were tentative about the EUR/CAD price. However, the quarterly Spanish GDP grew by 1.0%, which may add additional bullish momentum in the EUR/CAD price.
Commenting on the gradual recovery of the Spanish economy, Spain’s Minister of Economy and Competitiveness, Luis de Guindos commented during a radio interview that “we’re starting to see the light at the end of the tunnel. We are now able to return to pre-crisis income levels.”
Yesterday’s hawkish comments from the Spanish Economy Minister helped the EUR/CAD to form a Doji looking bullish pin bar after the price was rejected around the 1.4160 level.
As both the fundamental outlook and technical aspects are suggesting further upward moves, it is recommended that traders place a CALL order for the EUR/CAD with their binary options brokers once the price closes above the intermediate resistance zone at 1.4260.