EUR/CAD Daily Analysis: Hidden Divergence Signals Further Gains

Introduction to EUR/CAD

EURCAD, commonly known as the “Loonie Cross,” tracks the relationship between the Euro (EUR) and the Canadian Dollar (CAD). Traders use this currency pair to gauge the relative economic strength of the Eurozone and Canada, influenced primarily by commodity prices, especially oil, and European economic health. It’s a key barometer for investors seeking opportunities based on economic divergences between Europe and Canada.

EURCAD Market Overview

The EUR-CAD pair is currently experiencing a bullish trend driven by positive economic data from the Eurozone, particularly robust survey results from Germany’s ifo Institute and Belgium’s National Bank. Recent business confidence surveys indicate improving conditions, boosting the Euro’s appeal against the CAD. Conversely, Canada’s corporate earnings data released by Statistics Canada has created cautious optimism, with traders carefully monitoring whether Canadian economic conditions might support the CAD. The mixed economic signals from both regions suggest a potential for continued volatility in the pair. Over the next trading sessions, traders should closely monitor upcoming survey data releases on September 24, 2025, which will likely influence EUR/CAD price movements.

EURCAD Technical Analysis

Analyzing EUR/CAD’s daily chart reveals a clear upward trend supported by recent higher highs, though a brief correction appears likely soon. The Relative Strength Index (RSI) currently stands at 62, indicating sustained bullish momentum without yet being overbought. Moreover, a hidden bullish divergence (HD+) between price action and RSI suggests a likely continuation of the upward trend after this potential correction phase. Momentum oscillators align with this bullish outlook, reinforcing the technical setup. The potential target for EUR/CAD remains the upper boundary of the established long-term ascending channel, highlighting a strong bullish technical scenario.

Final Words about EUR vs CAD

Given current economic indicators and technical chart signals, EUR CAD remains favorably positioned for continued bullish momentum. However, traders should stay alert for brief corrections driven by short-term profit-taking or shifts in economic sentiment from either Eurozone or Canadian releases. Monitoring key economic releases from ifo Institute, the National Bank of Belgium, and Statistics Canada is crucial to anticipate market sentiment and directional changes. Effective risk management strategies remain essential, considering possible short-term volatility and shifting global economic conditions. Overall, maintaining a cautiously optimistic stance is advisable given the current market dynamics.

Disclaimer: This EURCAD analysis, provided by Unitedpips, is for informational purposes only and does not constitute trading advice. Always conduct your own Forex analysis before making any trading decisions.