Global macro overview for 14/06/2016:
The recent data from Canada's job market surprised market participants with its positive readings. According to the Statistics Canada, a total of 13,800 new jobs was added in May, after an unexpected fall to -2,100 in April. This figures beat the expectations of a 1,800 rise only. Moreover, the strong jobs figures also sparked a decline in the unemployment rate. It dropped to almost one-year low of 6.9% from 7.1% a month ago. In conclusion, there were growing concerns over the strength of the Canadian economy, but these concerns should ease, as stronger employment data should diminish Bank of Canada's willingness to cut interest rates.
Let's now take a look at the EUR/CAD technical picture on the daily time frame. The big picture of this market shows that the price is currently trading below the golden trend line and below 55,100 and 200 DMA, which indicates a bear market. Bears are getting closer and closer to the most important technical support at the level of 1.4029. This level might be tested as soon as the potential triangle structure, marked with purple lines, will be broken to the downside.
