- EUR/CAD breaks below 50% Fib at 1.4945, intraday bias lower.
- Next immediate support seen at 50-DMA at 1.4818. Violation there could see further downside.
- Bearish RSI divergence raises scope for downside. Break below 50-DMA targets 1.4670 (38.2% Fib).
- Technical indicators on daily charts are biased lower, RSI and Stochs point south.
- Bearish Stochastics divergence seen on weekly charts, RSI is biased lower, while Stochs are on verge of rollover from overbought levels.
Support levels - 1.4818 (50-DMA), 1.47, 1.4670 (38.2% Fib)
Resistance levels - 1.4944 (50% Fib), 1.5042 (5-DMA), 1.5101 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-breaks-below-20-DMA-eyes-50-DMA-at-14776-stay-short-749694) has hit all targets.
Recommendation: Book partial profits at lows. Lower trailing stops to 1.4950, target 1.4820/ 1.4670.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -97.1113 (Bearish), while Hourly CAD Spot Index was at 45.9345 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
