FxWirePro: EUR/CAD extends weakness, positive resolution to NAFTA talks lifts Canadian dollar, stay short

EUR/CAD chart on Trading View used for analysis

• EUR/CAD is extending weakness, trades 0.22% lower on the day at 1.48 at the time  of writing.
   
• The Canadian dollar lifted by the surprise resolution to NAFTA talks. US and Canada alongside Mexico, have reached a new trade deal, to replace NAFTA. 
   
• The pair trades below daily cloud, holds major trendline support at 1.48. Break below could see further downside.
   
• Price action is below major EMAs and technical indicators support further weakness.

Support levels - 1.48 (trendline), 1.4736 (Nov 8 2017 low), 1.4685 (Oct 18 2017 low)
Resistance levels - 1.5013 (5-DMA), 1.50, 1.4736 (Nov 8 low) 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-extends-bearish-gap-CAD-buoyed-as-US-Canada-agree-on-new-trade-deal-to-replace-NAFTA-1436314) has hit TP1.

Recommendation: Bias lower. Book partial profits, watch out for break below 1.48 for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -137.031 (Bearish), while Hourly CAD Spot Index was at 76.0818 (Bullish) at 0745 GMT. 

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