FxWirePro: EUR/CAD extends bearish gap, CAD buoyed as US-Canada agree on new trade deal to replace NAFTA

EUR/CAD chart on Trading View used for analysis

• EUR/CAD is extending bearish gap open, trades 0.74% lower on the day at 1.4867 at the time of writing.
   
• The Canadian dollar remains buoyed after the US and Canadian governments agreed to a trade deal just hours before a midnight deadline.
   
• The US and Canada alongside Mexico, have reached a new trade deal, to replace Nafta. 
   
• Canada does score a significant victory, with the U.S. agreeing to keep intact the chapter-19 mechanism for resolving disputes over anti-dumping and anti-subsidy duties.
   
• EUR/CAD is extending weakness below daily cloud, eyes major trendline support at 1.48. Break below could see further downside.
   
• Price action is below major EMAs and technical indicators support further weakness.

Support levels - 1.48 (trendline), 1.4736 (Nov 8 2017 low), 1.4685 (Oct 18 2017 low)
Resistance levels - 1.4953 (session high), 1.5058 (cloud base), 1.5109 (5-DMA) 

Recommendation: Good to sell on rallies, SL: 1.4955, TP: 1.48/ 1.4735/ 1.4685

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -111.596 (Bearish), while Hourly CAD Spot Index was at 112.407 (Bullish) at 0715 GMT.

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