- EUR/CAD has shown a decisive break below 50-DMA, intraday bias lower.
- Downward revisions of the Eurozone PMIs and weaker-than-expected German factory orders and retail sales print likely to keep the euro depressed.
- The pair is trading with a bearish momentum. RSI shows weakness below 50 levels.
- We notice bearish divergence on Stochs which keeps scope for downside. We also see -ve DMI dominance which adds to the bearish bias.
- Next major support lies at 1.55 (38.2% Fib retrace of 1.4442 to 1.61535 rally).
- On the flipside, retrace and close above 50-DMA to see further upside.
Support levels - 1.55 (38.2% Fib), 1.5375 (Feb 8 low), 1.5298 (50% Fib)
Resistance levels - 1.57 (5-DMA), 1.5715 (50-DMA), 1.5750 (23.6% Fib)
Recommendation: Good to go short on rallies around 1.5650, SL: 1.5720, TP: 1.56/ 1.55/ 1.5375.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 27.6053 (Neutral), while Hourly CAD Spot Index was at 94.8878 (Bullish) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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