- EUR/CAD is extending downside from 8-1/2 year highs at 1.6122 hit earlier this week.
- The pair has broken below 1.60 handle, breaches support at 5-DMA, bias lower.
- Technical studies are turning bearish. Stochs and RSI have rolled over from oversold levels.
- MACD is on verge of a bearish crossover which if completed will add to bearish bias.
- Next major support on the downside lies at 1.57 levels (nearly converged 20-DMA and trendline).
- Violation at 20-DMA support will see further weakness. Scope then for test of 50-DMA at 1.5412.
Support levels - 1.5835 (March 5 low), 1.57 (nearly converged 20-DMA and trendline), 1.55 (Feb 23 low), 1.5579 (Feb 28 low)
Resistance levels - 1.5941 (5-DMA), 1.60, 1.6122 (Mar 7 high)
Recommendation: Good to go short around 1.5860, SL: 1.5945, TP: 1.5835/ 1.58/ 1.57.
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