- EUR/CAD is struggling to break above 50% Fib retrace of 1.6105 to 1.3784 fall at 1.4944.
- The pair extending consolidation after breakout above major trendline resistance at 1.4820.
- Break above 50% Fib will see test of 1.52 levels and on the flipside, break below trendline will see drag till 1.4670 (38.2% Fib).
- Data released earlier today showed EU Markit Manufacturing PMI slightly below expectations, prints at 56.7 compared to 56.8 forecasted.
- EUR/CAD fell from 1.4938 to 1.4898 after the data.
- Strong support see by 1H 100-SMA at 1.4855. We see weakness only on break below.
- Technical indicators are bullish on weekly and daily charts, but remains in highly overbought zone which suggests caution.
Support levels: 1.4871 (5-DMA), 0.48 (trendline), 1.4755 (April 27 low)
Resistance levels: 1.4944 (50% Fib), 1.4960 (Nov 4 2016 high), 1.50, 1.5016 (Mar 10 2016 high)
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Neutral Neutral
1D Bullish Overbought
1W Bullish Neutral
Recommendation: Good to go long on breakout above 1.4950, SL: 1.4875, TP: 1.50/ 1.5016/ 1.51
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 17.3611 (Neutral), while Hourly CAD Spot Index was at -61.9797 (Bearish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
