FxWirePro: EUR/CAD extends weakness after 'Shooting Star' formation, breaks below 20-DMA, bias lower

• EUR/CAD is extending weakness after formation of a 'Shooting Star' pattern on weekly charts.
   
• RSI and Stochs have turned lower and MACD shows bearish crossover on signal line.
   
• The pair has broken 20-DMA support at 1.5032, technical indicators are bearish.
   
• Bears now eye 50-DMA at 1.4892, violation there could see further weakness.
   
• On the flip side, 5-DMA at 1.5144 is immediate resistance, resumption of upside likely on close above.
   
• Focus now on ECB and BoC policy meetings scheduled on Wednesday, 6th Dec for further impetus.

Support levels - 1.4892 (50-DMA), 1.4866 (cloud top), 1.48

Resistance levels - 1.5020 (5W-SMA), 1.5032 (20-DMA), 1.51, 1.5145 (5-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Shooting-Star-formation-on-EUR-CAD-raises-scope-for-downside-focus-on-ECB-for-further-impetus-1039132) has hit TP1/2.

Recommendation: Book partial profits. Bias lower, stay short for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -50.2428 (Neutral), while Hourly CAD Spot Index was at 76.6121 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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