FxWirePro: EUR/CAD breaks above 55-EMA, on track to test trendline resistance at 1.5185, stay long

EUR/CAD chart on Trading View used for analysis

• EUR/CAD is trading 0.23% higher on the day at 1.5039 at the time of writing.
   
• The pair trades with a bullish momentum and is likely to see further upside.
   
• Price action has broken above 55-EMA and is on track to test major trendline resistance at 1.5185.
   
• Sharp decline in energy prices and sudden doubts about the passage of the revised NAFTA deal through a Democrat led Congress are weighing on the Canadian dollar.
   
• Focus now on Canada CPI data due Thursday for further impetus.
   
• The pair is trading in a Falling Wedge pattern and breakout at wedge top to propel the pair higher.

Support levels - 1.5014 (55-EMA), 1.4976 (5-DMA)

Resistance levels - 1.5084 (23.6% Fib), 1.5185 (trendline resistance)

Recommendation: Good to stay long on close above 55-EMA, SL: 1.4975, TP: 1.5085/ 1.5185

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.