FxWirePro: EUR/CAD edges above minor trendline resistance at 1.5230, focus on BoC for further direction

• EUR/CAD is trading in an extremely narrow range on the day, as traders remain wary ahead of the crucial BOC policy meeting.
   
• Markets 87% priced in for a rate hike. The recent employment report and the uptick in CPI inflation lifted the odds of an increase.
   
• The pair has edged above minor trendline resistance at 1.5230, but is struggling to extend gains.
   
• Due shortly from now is inflation data from the eurozone which could impact the pair.
   
• Technical studies suggest further upside in the pair. We see scope for test of Wedge top at 1.54 levels.
   
• Break below 5-DMA at 1.5147 could see drag upto 50-DMA at 1.5054. Violation at 50-DMA could see further bearishness.

Support levels - 1.5147 (5-DMA), 1.51 (cloud top), 1.5081 (20-DMA), 1.5054 (50-DMA)

Resistance levels - 1.53 (Dec 20 high), 1.54 (Wedge top)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-Trade-Idea-1094896) has hit TP1/2.

Recommendation: We expect some volatility into BoC. Prefer to exit trade at highs. 

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 80.674 (Bullish), while Hourly CAD Spot Index was at 53.313 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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