- EUR/CAD has shown a break above 50% Fib retrace of 1.6105 to 1.3784 fall at 1.4944.
- The pair is extending break above major trendline resistance at 1.4820, bias remains higher.
- We see scope for test of 1.52 levels and on the flipside, break below trendline will see drag till 1.4670 (38.2% Fib).
- Euro largely unchanged after Eurozone prelim GDP and PPI data. Eurozone economy advanced 0.5% on quarter in the three months to March of 2017 as expected.
- While, EZ Producer Price Index (YoY) registered at 3.9%, below expectations (4.1%) in March.
- Data released on Tuesday showed EU Markit Manufacturing PMI slightly below expectations, prints at 56.7 compared to 56.8 forecasted.
- Technical indicators are bullish on weekly and daily charts, but remains in highly overbought zone which suggests caution.
Support levels: 1.4944 (50% Fib), 1.4914 (5-DMA), 0.48 (trendline), 1.4755 (April 27 low)
Resistance levels: 1.50, 1.5016 (Mar 10 2016 high), 1.5218 (61.8% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-breaks-major-trendline-resistance-at-14820-bias-higher-673987) is progressing well.
Recommendation: Hold for targets.
