As expected, a flat trend has formed. A consolidation of the rates in the range of 1.5041 - 1.5447 has been observed since April. Both currencies are influenced by the same factors and opposed to each other on an equal basis. However, we can see a decrease in optimism in June and an increase in investors' fears about a new wave of coronavirus infections. This may negatively affect commodity currencies, although the Canadian dollar is not yet experiencing strong pressure because oil, contrary to expectations, is held at local highs, amid a recovery in the demand for black gold.
This week, the rates began to move closer to the resistance line. The euro received support after the publication of business activity indices in the eurozone, which rose above the forecasts. Active ECB measures to support the economy also promote the demand for the euro. The Canadian dollar, in the absence of any macroeconomic reports, depended solely on external factors.
We believe that the resistance line will be tested soon. A trend reversal is also possible. Most technical analysis tools indicate the efficiency of the deals to BUY. Therefore, today we are choosing these deals for the EUR/CAD.
