EUR/CAD forecast for January 29, 2021

Looking at the chart on a weekly time frame, we see a long-term upward trend with certain pullbacks. For now, the EUR/CAD pair has the support of all moving averages, but in general, the pair is under great pressure and very volatile in the short price range. We can pay attention to the moving average MA20 and EMA20 because they are a good indicator of the direction of the trend. We will consider that the bullish trend is still in force.
On the daily time frame, we see the EUR/CAD pair’s movement, which is framed by zones on the upper and lower side. Above we have a resistance zone at 1.57000-1.57500, and at the bottom, we have a support zone at 1.54000-1.55000. The chart’s current position is supported by moving averages from the bottom, and based on that, we can expect the bullish trend to continue.
In the four-hour time frame, the picture is a little different. Here we can now use the Fibonacci retracement level tool. The EUR/CAD pair is currently finding resistance at a 61.8% level, holding the pair back to higher levels. The pullback is very likely, and if it happens, we can expect it to 1.54500 at a Fibonacci 38.2% level where we have a smaller trend line and possible support on the chart. If we see a break above 61.8% level, we can look at the previous high at 1.57800 as our target for the bullish option.
For the EUR/CAD pair, we can single out the following economic news: The ECB focuses on financing conditions, stopping political decisions. Moving with the reduction of the stop to stifle the strength of the euro is something that the modern central bank is unlikely ever to implement, let alone see the ECB see limited benefits from its negative political rate so far in recent years.

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German unemployment fell unexpectedly in January, according to data from the Federal Labor Agency on Friday. German economic growth slowed sharply in late 2020 due to restrictions imposed to prevent the spread of Covid-19, data showed on Friday. The gross domestic product grew 0.1 percent sequentially in the fourth quarter, slower than the 8.5 percent growth recorded in the third quarter.