💶🍁EUR/CAD Correction time.
💶🍁 Looking at the fundamentals:
💶The economy in the Eurozone, according to the latest readings taking place on November 15, grew by 0.2% quarter-on-quarter in the last three months from September 2022. This is the sixth consecutive quarter of growth, worth noting that this is the weakest quarter in terms of growth compared to previous quarters. Also worth noting are the European Commission's views on the future performance of the economy. They warn of an impending recession which is expected to begin in the current quarter, and we may not see increases until next spring. All due to rising inflation and Russia's aggression in Ukraine. Which has caused Energy price increases across Europe
🍁 In Canada, on the other hand, the latest readings that have taken place are for the second quarter in which the economy grew 0.8%, which means maintaining the level relative to previous readings. This is the fourth quarter in a row in which we have recorded increases. The next readings will take place on November 29. The accumulation of business inventories, investments contributed most to the increases for the latest readings. It is also worth noting that an increase in consumer spending also contributed to the increase. On the other hand, growth was undermined by high imports of products from abroad at 6.9%, far outpacing exports at 2.6%
💶 Unemployment in the Eurozone stands at 6.6%.
These are better results than before, at the Nov. 3 reading for we recorded a 0.1% drop from previous readings. The next reading will be on December 1.
🍁Canadian Unemployment at 5.2% levels with no sharp changes, the reading took place on November 4 and was exactly the same as October 7.
💶The market in the Eurozone expected inflation to break through recent peaks, with a reading of 10.6% on November 17. This was up from the previous level of 9.9%. The next readings will be on November 30.
🍁 In Canada, inflation is clearly declining. From the peak set in June at levels of 8.1% we scored a drop to levels of 6.9% at the last readings which took place on November 16. The next one is on December 21, and there's no sign that the downward trend is about to reverse. This favors a future slowdown in interest rate hikes, which will weaken the Canadian Dollar against other currencies. Especially compared to the Euro on which the situation is reversed
💶On 27 October we saw a jump in interest rates in the Eurozone to 2% just as everyone expected. This was an increase of 75 basis points from levels of 1.25%
💶Combined with inflation hitting new peaks, it's hard to say here that the Euro will have trouble strengthening in the months ahead.
🍁26 October rate hike in Canada was a full 50 basis points to 3.75% Markets assume that the inflation in 2023 could reach 3% where in 2024 it will fall to target levels of 2%.
🍁 If we maintain the downward trend on inflation we can expect increasingly mild interest rate hikes which will turn into reductions after some time.
💶🍁Turning to the chart.
💶🍁After we scored a bottom at 1.28758 almost three months ago from which we started an upward wave that took us to the levels of 1.38757, an increase of 7.76%.
💶🍁In my opinion, in order to continue the uptrend, the ideal time has come to execute a downward correction resulting from the lack of willing buyers at current price levels, as we can see from the last few days in which the price had a clear problem with breaking new highs.
💶🍁The most sensible support zone looks to be a cluster of two levels. The 0.382 fibo level of the entire upward wave and the 1:1 level of the largest downward correction in the current upward wave. The level is further confirmed by looking at the fact that the price has repeatedly on it previously found the fighting zone of buyers and sellers.
💶🍁The resistance zone remains the zone between the last peak and the 1.272 level of the current downward wave.
💶🍁The scenario I am playing out is a gradual decline in price to reach a support zone at which I expect a reaction that may turn into the next upward wave on this pair.
💶🍁*Please do not suggest the path I have drawn with the lines this is only a hypothetical scenario for further increases.
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
💶🍁 Looking at the fundamentals:
💶The economy in the Eurozone, according to the latest readings taking place on November 15, grew by 0.2% quarter-on-quarter in the last three months from September 2022. This is the sixth consecutive quarter of growth, worth noting that this is the weakest quarter in terms of growth compared to previous quarters. Also worth noting are the European Commission's views on the future performance of the economy. They warn of an impending recession which is expected to begin in the current quarter, and we may not see increases until next spring. All due to rising inflation and Russia's aggression in Ukraine. Which has caused Energy price increases across Europe
🍁 In Canada, on the other hand, the latest readings that have taken place are for the second quarter in which the economy grew 0.8%, which means maintaining the level relative to previous readings. This is the fourth quarter in a row in which we have recorded increases. The next readings will take place on November 29. The accumulation of business inventories, investments contributed most to the increases for the latest readings. It is also worth noting that an increase in consumer spending also contributed to the increase. On the other hand, growth was undermined by high imports of products from abroad at 6.9%, far outpacing exports at 2.6%
💶 Unemployment in the Eurozone stands at 6.6%.
These are better results than before, at the Nov. 3 reading for we recorded a 0.1% drop from previous readings. The next reading will be on December 1.
🍁Canadian Unemployment at 5.2% levels with no sharp changes, the reading took place on November 4 and was exactly the same as October 7.
💶The market in the Eurozone expected inflation to break through recent peaks, with a reading of 10.6% on November 17. This was up from the previous level of 9.9%. The next readings will be on November 30.
🍁 In Canada, inflation is clearly declining. From the peak set in June at levels of 8.1% we scored a drop to levels of 6.9% at the last readings which took place on November 16. The next one is on December 21, and there's no sign that the downward trend is about to reverse. This favors a future slowdown in interest rate hikes, which will weaken the Canadian Dollar against other currencies. Especially compared to the Euro on which the situation is reversed
💶On 27 October we saw a jump in interest rates in the Eurozone to 2% just as everyone expected. This was an increase of 75 basis points from levels of 1.25%
💶Combined with inflation hitting new peaks, it's hard to say here that the Euro will have trouble strengthening in the months ahead.
🍁26 October rate hike in Canada was a full 50 basis points to 3.75% Markets assume that the inflation in 2023 could reach 3% where in 2024 it will fall to target levels of 2%.
🍁 If we maintain the downward trend on inflation we can expect increasingly mild interest rate hikes which will turn into reductions after some time.
💶🍁Turning to the chart.
💶🍁After we scored a bottom at 1.28758 almost three months ago from which we started an upward wave that took us to the levels of 1.38757, an increase of 7.76%.
💶🍁In my opinion, in order to continue the uptrend, the ideal time has come to execute a downward correction resulting from the lack of willing buyers at current price levels, as we can see from the last few days in which the price had a clear problem with breaking new highs.
💶🍁The most sensible support zone looks to be a cluster of two levels. The 0.382 fibo level of the entire upward wave and the 1:1 level of the largest downward correction in the current upward wave. The level is further confirmed by looking at the fact that the price has repeatedly on it previously found the fighting zone of buyers and sellers.
💶🍁The resistance zone remains the zone between the last peak and the 1.272 level of the current downward wave.
💶🍁The scenario I am playing out is a gradual decline in price to reach a support zone at which I expect a reaction that may turn into the next upward wave on this pair.
💶🍁*Please do not suggest the path I have drawn with the lines this is only a hypothetical scenario for further increases.
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
Trade active
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.