- Cloud caps upside in EUR/CAD, technical studies bearish.
- After struggling at major trendline resistance on mutliple sessions, the pair has slipped lower to break daily cloud.
- The pair finds major support at 1.4776 which is converged 50 and 100 DMA.
- We see scope for test of trendline at 1.4625 on break below 1.4776. Violation there then eyes 200-DMA at 1.4457.
- Focus on Eurozone final CPI, trade balance and ECB monetary policy meeting minutes for further direction.
Support levels - 1.4776 (converged 50&100 DMA), 1.4769 (cloud base), 1.4625 (trendline), 1.4457 (200-DMA)
Resistance levels - 1.4869 (cloud top), 1.4915 (5-DMA), 1.4990 (trendline)
Recommendation: Good to go short on decisive break below 1.4776, SL: 1.4870, TP: 1.4625/ 1.4460
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -128.134 (Bearish), while Hourly CAD Spot Index was at 129.199 (Bullish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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