FxWirePro: EUR/CAD bounces off 20-DMA, but bearish divergence keeps scope for downside

• EUR/CAD holds 20-DMA support, we see weakness on break below.
   
• OPEC supply cut extension has disappointed the oil market, CAD dented as oil slips lower.
   
• The Canadian dollar supported by BoC positive statements post meeting where it held rates unchanged overnight.
   
• Brent oil regained bid tone as OPEC disappointment-led slide stalls. EUR/CAD muted on the day, reversing slightly from Thursday's high.
   
• Draghi's comments keep pressure on the euro, keeping potential for drag lower.
   
• EUR/CAD remains capped below 61.8% Fibo 1.6105 to 1.3784 fall at 1.5218. Upside only on break above.
   
• Further, price action is showing a bearish divergence from RSI and Stochs which adds to the downside bias.

Support levels - 1.51, 1.5026 (20-DMA), 1.4944 (50% Fibo 1.6105 to 1.3784 fall), 1.49, 1.4823 (May 10 low)

Resistance levels - 1.5142 (May 24 high), 1.5218 (61.8% Fib), 1.5281 (Nov 9 high)

Recommendation: Watch out for break below 20-DMA to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 18.555 (Neutral), while Hourly CAD Spot Index was at -75.846 (Bearish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.