- EUR/CAD extends downside for 3rd successive session after rejection at major trendline resistance.
- The pair has slipped below weekly 200-SMA at 1.4505. Price action has dipped into weekly cloud.
- Technical studies support downside. RSI biased south and is below 50 levels. Stochs are biased lower and MACD supports downtrend.
- The pair is trading a narrow range and upside is capped below 200-DMA at 1.4496.
- We see scope for further downside, test of 61.8% Fib at 1.4347 likely.
Support levels - 1.44, 1.4347 (61.8% Fib of 1.3783 to 1.5258 rally), 1.4317 (weekly cloud base)
Resistance levels - 1.4496 (200-DMA), 1.4526 (5-DMA), 1.46, 1.4695 (38.2% Fib)
Recommendation: Good to go short on rallies around 1.45, SL: 1.46, TP: 1.44/ 1.4350/ 1.4320.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 26.6905 (Neutral), while Hourly CAD Spot Index was at 56.8039 (Neutral) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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