FxWirePro: EUR/CAD finds stiff resistance at 1.4975, break above to see further upside

• EUR/CAD is trading a symmetric triangle pattern, finds stiff resistance at 1.4975.
   
• The pair is trading a narrow range on the day, holds above 5-DMA at 1.4916.
   
• Break below 5-DMA would find next major support at 1.4906 (23.6% Fib), further downside only on break below.
   
• Bullish divergence keeps scope for upside, we see chances for test trendline resistance at 1.5260.
   
• The pair has bounced off weekly 200-SMA and technical studies are bullish.
   
• On the flipside, we see bullish invalidation on break below 20-DMA at 1.4720. Drag till 200-DMA at 1.4453 then likely.

Support levels - 1.4906 (23.6% Fib retrace of 1.3777 to 1.5255 rally), 1.4801 (50-DMA), 1.4720 (20-DMA), 1.4453 (200-DMA)

Resistance levels - 1.4975 (trendline), 1.50, 1.5105 (May 30 high), 1.5151 (May 5 high), 1.5160 (trendline)

Call update: We had advised a long call (http://www.econotimes.com/FxWirePro-Bullish-divergence-on-EUR-CAD-good-to-go-long-on-dips-841594).

Recommendation: We recommend staying long on dips.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 4.18259 (Neutral), while Hourly CAD Spot Index was at 7.59943 (Neutral) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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