FxWirePro: EUR/CAD breaks below 200-DMA, good to go short on rallies

EUR/CAD chart on Trading View used for analysis

• EUR/CAD has resumed weakness after a brief pause on Monday.
   
• The pair is trading 0.44% lower on the day at 1.5196 at 0650 GMT.
   
• Price action has broken below 200-DMA raising scope for further wekaness.
   
• Momentum indicators are biased lower. RSI below 50, bias lower.
   
• MACD shows bearish crossover on signal line adding to the bearish  bias.
   
• Dip till 61.8% Fib at 1.5093 likely. Further weakness to see test of trendline support at 1.5025.
   
• On the upside, 5-DMA is immediate resistance at 1.5292. Break above could see upside till 20-DMA.

Support levels - 1.5170 (110-EMA), 1.5093 (61.8% Fib), 1.5025 (trendline)

Resistance levels - 1.5214 (200-DMA), 1.5291 (5-DMA), 1.53

Recommendation: Good to go short on rallies around 1.52, SL: 1.5290, TP: 1.51/ 1.5025

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