Forex Market Analysis

Daily Market Update: Euro CPI, Great Britain & Canadian GDP


News Commentary



The Euro CPI Flash Estimate is set to exceed the last reading at 1.9%, to reach the ECB target of 2.0%.

This could give much volatility to the Euro after the negative market reaction to the last ECB meeting.


In Great Britain, the focus will be on the final release of the Q1 UK GDP. There is a chance it may get revised up closer to the Bank of England forecast of 2.3% vs 2.1% actual.


According to a report by Reuters, Canada is set to announce financial aid for their steel industry and workers on Friday.

“Canada will hit back against U.S. tariffs on its steel and aluminium by offering affected companies and workers up to C$800 million ($603 million) in aid”, a source familiar with the matter said on Thursday.

This could shake the market and affect the US dollar badly, as all sides stick to tit for tat tariffs.


Chart Analysis





On the daily chart, the price has reached the support zone of 0.7325-0.7365.

The pair is supposed to find some breath powered by divergence on RSI to reach the key resistance of 0.7515, where the descending trend from the high of February is located.




On the daily chart, as we expected, the pair bounced from the descending trend from the high of 2017 and the key resistance of 111.1.

As you can see on the chart, the price is moving according to Elliot waves. By forming the A & B waves, we are waiting for the next move down to hit the C level which is located at the support of 106.9 and also to meet the ascending trend from the low of 2016.

So, a possible bounce has started and on its way.



As we expected before, the price has reached the key resistance level of 1.334.

We can see the price has reversed from a very strong selling area according to many factors, including key resistance level, 78.6% Fibonacci, the upper level of the reversal wedge, forming the Gartley harmonic pattern, and overbought in RSI.

So, with this engulfing bar, the price will be led down to the support zone at 1.309-1.299.



On the daily chart, the price had a bearish rally from the key resistance of 86.95 to reach the support of 81.15, near the green support zone.

The pair bounces with an engulfing bar from the 78.6% Fibonacci level.

A Gartley harmonic pattern has been shaped at these same levels, with an oversold area on RSI.

All these factors enhance the bounce bias for the price to reach firstly the resistance at 85.5, then the retest at 86.95


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