FxWirePro: EUR/CAD recovery capped at 21-EMA, scope for test of 78.6% Fib, good to stay short on upticks

EUR/CAD chart on Trading View used for analysis 

• EUR/CAD recovery rejected at 21-EMA resistance, bias bearish.
   
• The pair is extending weakness for the 2nd straight session, trades 0.12% lower at 1.50 at 1215 GMT.
   
• Technical studies are bearish. Price action below cloud and major moving averages. 
   
• Break below 1.50 handle finds little support till 78.6% Fib at 1.4944. Further weakness to see test of trendline support at 1.4885.
   
• On the flipside, 21-EMA is strong resistance at 1.5091. Break above 200-DMA negates bearish bias.

Support levels - 1.4944 (78.6% Fib), 1.4885 (trendline support), 1.4855 (88.6% Fib)

Resistance levels - 1.5023 (5-DMA), 1.5091 (21-EMA), 1.5209 (cloud base)

Recommendation: Good to stay short on upticks, SL: 1.51, TP: 1.4945/ 1.49/ 1.4885

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