Looking at the chart on the weekly time frame, we see that the pair fails to stabilize above 1.57000, where the euro loses strength and returns below that level. When the pair fell below the moving average of MA20, that is our first sign of a possible continuation of the bearish trend and a drop below 1.55000. We can look for potential support in the moving average of MA50 at 1.53600. Rising oil prices give strength to the Canadian dollar against other currencies, with the help of reducing the risk of finding the vaccine and its global application.
We see the pair moving sideways in the daily time frame, bouncing off the lower support zone and the upper resistance zone. The pair is currently on the bearish side as potential support can be our moving average MA200 (purple line) at around 1.54500, where we can again expect a change of trend and switch to the bullish option.
In the four-hour time frame, we see a strong bearish trend when the pair fell below 1.57000, and if it continues like this, we can expect it to fall to 1.53000-1.53500. All moving averages are pushing the pair towards lower levels, and we can expect that in the next short period.
From the economic news today, we can single out: On the eve of the speech of the President of the European Central Bank (ECB) Christine Lagarde, a member of the Governing Council and head of the Bank of France Francois Villeroy de Galhau went through Reuters with key quotes below. “We will maintain favorable monetary conditions for as long as necessary.” “We are closely monitoring the negative effects of the euro exchange rate.” “We remain committed to the inflation target of 2%,” said President Christine Lagarde in a scheduled speech at the Routers Online event. “We are monitoring foreign exchange movements very carefully,” she added. German wholesale prices fell at the slowest pace in ten months in December, Destatis reported on Wednesday. Wholesale prices fell 1.2 percent year-on-year in December, after falling 1.7 percent a month ago. This was the slowest price drop since February.
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