EUR/CAD chart on Trading View used for analysis
- EUR/CAD edges lower from session highs at 1.50, trades at 1.4950 at 1210 GMT.
- Upside in the pair is capped below 20-DMA and we see any upside only on break above.
- The single currency is suppressed after a mixed tone in the ZEW Survey earlier today.
- EMU Current Account shrunk at a seasonally adjusted €16.2 billion in December from €22.7 billion in the previous month.
- Economic Sentiment in Germany improved a tad to -13.4 while Current Conditions dropped to 15.0, missing consensus.
- On the broader euro area, the Economic Sentiment also surprised to the upside, coming in at -16.6.
- Technical studies are bearish. Price action below cloud and major moving averages.
- Price is on track to test trendline support at 1.4920. Break below eyes 88.6% Fib at 1.4855.
Support levels - 1.4920 (trendline), 1.4855 (88.6% Fib)
Resistance levels - 1.50, 1.5036 (21-EMA), 1.51
Recommendation: Good to stay short on upticks, SL: 1.5040, TP: 1.4920/ 1.4855
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.