Most soft data in the euro area are signaling April bottoming, and a recovery from the extreme deflationary economic status.
This brings more optimism in the euro area, and helps the euro currency to edge higher in the near future.
In the other side, Canadian economy is still struggling with an extreme deflationary economic situation that needs more stimulus from the Bank of Canada (BOC) and the government.
In response to that, the BOC is continuing its massive efforts to help the economy through unprecedented rates of increase in the Bank Balance Sheet.
On a comparative basis, PMI data and other leading indicators in both regions are signaling earlier signs of a recovery in the euro area compared to Canada, which is still facing deep recession for a relatively much longer period.
Those signals may help the euro to edge higher against the Canadian Dollar.
The short term moving average is trading above the long term one, with an increasing price momentum. This brings the volatility needed to break higher.
Position entry signal: H4 bullish candlestick close above 1.5400.
Stop loss: 1.5230
Remember that this trade may take more than one or two weeks before reaching the preset target.
Patience is key for profitable traders.