FxWirePro: EUR/CAD breaks strong trendline support at 1.4925, eyes 200-W SMA at 1.4790

EUR/CAD chart on Trading View used for analysis

• EUR/CAD trades 0.12% higher on the day around 1.49 at 0800 GMT.
   
• The pair has broken below major trendline support at 1.4925, bias lower.
   
• Major trend is bearish and break below trendline support (1.4925) has raised scope for further downside.
   
• Focus on key advanced inflation figures in Germany and the euro area due on Thursday and Friday, respectively.
   
• The single currency also eyes developments from the US-China trade talks for near term direction.
   
• The pair finds stiff resistance at 20-DMA at 1.5014, further upside only on break above.
   
• Next major support lies at 88.6% Fib at 1.4855. Breach below eyes 200-W SMA at 1.4790 ahead of 1.4754 (Oct 4 low).

Support levels - 1.4855 (88.6% Fib), 1.48, 1.4790 (200-W SMA)

Resistance levels - 1.4938 (5-DMA), 1.4996 (20-DMA), 1.5037 (Feb 19 high)

Recommendation: Good to stay short on upticks, SL: 1.4950, TP: 1.4855/ 1.48

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