- EUR/CAD hovers around 5-DMA at 1.4712, intraday bias neutral.
- The pair finds stiff resistance at 50-DMA at 1.4750, we see upside only on break above.
- Price action seen capped between 50 and 200 day moving averages, breakout will provide clear steer to the pair.
- The single currency dampened post disappointing results by both CDU's Merkel and SPD leader Schulz.
- Merkel's CDU is now expected to form, not without months of negotiations, a coalition with the liberals and the Greens, what has been called the "Jamaica Coalition".
- Focus now on German IFO September survey and Draghi's testimony about the EZ economy and monetary developments before the European Parliament Economic and Monetary Affairs Committee.
- EUR/CAD has retraced dip below 20-DMA at 1.4681, close below will see further downside. Scope then for test of trendline support at 1.4485.
- Violation at 1.4485 (trendline) could see test of 200-DMA at 1.4520. Bearish invalidation above 50-DMA at 1.4750.
Support levels - 1.4681 (20-DMA), 1.4485 (trendline), 1.4520 (200-DMA)
Resistance levels - 1.4750 (50-DMA), 1.4812 (Sept 6 highs), 1.4831 (100-DMA), 1.4946 (61.8% Fib retrace of 1.52580 to 1.44422 fall)
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