- EUR/CAD on track to test trendline resistance at 1.5260.
- The pair has bounced off weekly 200-SMA and technical indicators on weekly charts are bullish.
- We note bullish divergence from price action on RSI and Stochs which supports upside.
- Scope for test of trendline at 1.5160. Breach there could see extension of gains upto 1.5252.
- On the flipside, we see bullish invalidation on break below 20-DMA at 1.4684. Drag till 200-DMA at 1.4453 then likely.
Support levels - 1.4928 (5-DMA), 1.4812 (50-DMA), 1.4684 (20-DMA)
Resistance levels - 1.50, 1.5105 (May 30 high), 1.5151 (May 5 high), 1.5160 (trendline)
Recommendation: Good to go long on dips around 1.4810/4830, SL: 1.4680, TP: 1.4985/ 1.51/ 1.5150/ 1.5160.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 19.4764 (Neutral), while Hourly CAD Spot Index was at 3.83401 (Neutral) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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