EUR/CAD biased to the downside
The EUR/CAD has been in a steady medium term uptrend since mid-October which saw the euro post gains from around 1.4300 to highs of above 1.4700. The daily chart shows a bearish close after EURCAD opened this week, gapping higher to 1.4756 before closing the day lower at 1.4721.
EUR/CAD is looking a tad weaker ahead of the Canadian GDP figures due to come out later today.
Economists are expecting to see a 0.2% month on month GDP increase in September. It is somewhat slower than August GDP report which showed a 0.5% increase
Despite the bearish forecasts, the upside risk to the GDP report cannot be ignored. After the Canadian economy was hit by the Alberta wildfires, oil production resumed at full swing in Fort McMurray region which had to be closed in May. Canada's energy sector was seen rising at a healthy pace in September adding to the potential bullish print on the GDP figures.
Meanwhile in the eurozone, economic data is quiet as France and Italian markets are closed on account of All Saints Day. This means that the euro's price action today could be governed by the US economic data which could influence the currency flows into the single currency.
How to trade binary
EUR/CAD is seen finding support at 1.4700 handle, but the daily chart signals a near term exhaustion to this uptrend. Failure to create higher highs after price dipped to 1.4650 is indicative that the bullish momentum is fading.
The current 1hr session is forming an inside bar. Therefore look for a bearish close below 1.4695 in EUR/CAD and purchase PUT options for end of day or 21:00 GMT expiry time.
In the event that EUR/CAD closes to the upside, above 1.4720, then wait until price falls below 1.4700 and buy PUT options for 21:00 GMT expiry.