FxWirePro: EUR/CAD rejected at 55-DMA, good to stay short on upticks

EUR/CAD chart on Trading View used for analysis

• EUR/CAD has been rejected at 55-EMA, slips below 20-DMA to trade 0.41% lower on the day.
   
• Euro dented across the board after eurozone PMIs missed expectations to hir multi-month lows. 
   
• Italian budgetary concerns continue to weigh on the single currency and we see further weakness into the ECB policy meeting.
   
• On the otherside, CAD remains strong on rising crude oil prices and as BoC is widely expected to hike policy rate.
   
• Clearing the NAFTA roadblock has sealed a third interest rate hike of 2018 by the BoC. 
   
• There is also some speculation that Gov Poloz may choose to accelerate that schedule now that the trade deal is signed.
   
• Bias for EUR/CAD remains bearish. Upside is capped at 21-EMA and technical indicators are also turning bearish.
   
• We see scope for weakness till 1.4735 (trendline support). Bearish invalidation above 55-EMA.

Support levels - 1.4917 (May 30 low), 1.4818 (Jan 9 low), 1.4735 (trendline)

Resistance levels - 1.5014 (21-EMA), 1.5080 (55-EMA), 1.51

Recommendation: Good to stay short on upticks, SL: 1.5020, TP: 1.4915/ 1.1820/ 1.4740

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