FxWirePro: EUR/CAD bounces off major trendline support at 1.47, eyes 200-DMA at 1.4483 on break below

• EUR/CAD has edged off session lows at 1.4703 and is currently trading at 1.4789 levels.
   
• The pair finds major trendline support at 1.47 levels and we see weakness on break below.
   
• The pair has closed below 50-DMA at 1.4779 on Friday's trade which raises scope for downside.
   
• Retrace above 50-DMA could see minor reversal upto 1.4864 (5-DMA). Bearish invalidation on retrace above 100-DMA.
   
• On the downside, bears next immediate target lies at 1.4483 (200-DMA).
   
• Technical studies on weekly charts are also mildly bearish. Upside was rejected at trendline at 1.50. Weekly 5-SMA has turned lower and at 1.4827 weighs on the upside.

Support levels - 1.47 (trendline), 1.4670 (38.2% Fib of 1.6105 to 1.3784)

Resistance levels - 1.48, 1.4828 (weekly 5-SMA), 1.4855 (100-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-holds-50-DMA-support-at-14768-weakness-only-on-break-below-865443) is progressing well.

Recommendation: Place stops at 1.4855, stay short for 1.47/ 1.4650/ 1.46/ 1.4556/ 1.4483.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 68.1476 (Bearish), while Hourly CAD Spot Index was at 42.837 (Neutral) at 1010 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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