FxWirePro: EUR/CAD breaks major trendline resistance at 1.4820, bias higher

• 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.