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FxWirePro: EUR/CAD hovers around 100-DMA, test of 61.8% Fib likely on break above

  • EUR/CAD struggled to hold break above 100-DMA on Friday's trade, slips below to close at 1.5455.
     
  • We saw a potential shooting star formation on the daily candle which raised scope for weakness.
     
  • However, the pair has ignored Friday's shooting star and edged higher on the day to retake 100-DMA at 1.5528.
     
  • Price action rages within the cloud and is extending gains above 200-DMA.
     
  • Technical indicators are biased higher and decisive break above 100-DMA will take the pair higher to test 61.8% Fib at 1.5688.
     
  • The pair trades with a bullish momentum. RSI shows strength at 65 levels with room to run further. 
     
  • MACD supports upside and we see +ve DMI crossover on -ve DMI which adds to the bullish bias.
     
  • On the downside we see minor weakness on break below 5-DMA at 1.5444. Retrace below 200-DMA invalidates bullish bias.

Support levels - 1.5444 (5-DMA), 1.5257 (200-DMA)

Resistance levels - 1.5528 (100-DMA), 1.5688 (61.8% Fib)

Recommendation: Good to go long on breakout at 100-DMA, SL: 1.5410, TP: 1.56/ 1.5685/ 1.57

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 56.4969 (Neutral), while Hourly CAD Spot Index was at -175.483 (Bearish) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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