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FxWirePro: EUR/CAD breaks below 5-DMA support, bearish RSI divergence adds to downside bias

EUR/CAD extends downside for 2nd successive session, edges lower from 6-month highs at 1.5258 hit on Friday's trade. The pair has broken 5-DMA support at 1.5152, could see drag lower. Better-than-expected Euro-zone Senti…

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FxWirePro: EUR/CAD breaks below 5-DMA support, bearish RSI divergence adds to downside bias
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  • EUR/CAD extends downside for 2nd successive session, edges lower from 6-month highs at 1.5258 hit on Friday's trade.
     
  • The pair has broken 5-DMA support at 1.5152, could see drag lower.
     
  • Better-than-expected Euro-zone Sentix investor confidence data seems to have little impact on the pair.
     
  • Data released today showed European Monetary Union Retail Sales (m/m) came in at 0.1%, below expectations (0.2%) in April.
     
  • Further, bearish RSI divergence raises scope for downside. Break below 20-DMA will confirm near-term weakness.

Support levels - 1.51, 1.5076 (20-DMA), 1.4969 (May 30 low)

Resistance levels - 1.52, 1.5218 (61.8% Fib of 1.6105 to 1.3783 fall), 1.5258 (June 2 high), 1.5281 (Nov 9 high)

Recommendation: Watch out for break below 20-DMA to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -41.7605 (Neutral), while Hourly CAD Spot Index was at -83.0921 (Bearish) at 1020 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

 

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