FxWirePro: 5-DMA caps upside in EUR/CAD, good to go short below 1.4738

• EUR/CAD is trading a narrow range on the day, 5-DMA caps upside in the pair.
   
• Technical studies are biased bearish. RSI and Stochs biased lower, RSI weakness seen below 50 levels.
   
• Daily cloud offers strong support at 1.4758 ahead of 50-DMA at 1.4738.
   
• Break below 50-DMA will see further weakness. Scope then for test of 200-DMA at 1.4640.
   
• MACD shows bearish crossover on signal line which supports the bearish bias.
   
• On the flipside, retrace above 20-DMA at 1.4852 invalidates bearish bias.

Support levels - 1.4758 (cloud top), 1.4738 (50-DMA), 1.47, 1.4685 (Oct 18 low), 1.46 (trendline)

Resistance levels - 1.4838 (5-DMA), 1.4848 (20-DMA), 1.5040 (Oct 31 high)

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Call update: We advised a short in our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-Trade-Idea-992201) .

Recommendation: Bias lower, stay short below 50-DMA.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -75.3178 (Neutral), while Hourly CAD Spot Index was at 66.8907 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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