- EUR/CAD has partially reversed brief dip below 50-DMA at 1.4828 and is currently trading around 1.4833 levels.
- Bearish RSI divergence raises keeps for downside. Break below 50-DMA targets 1.4670 (38.2% Fib).
- Bank of Canada Governor Stephen Poloz said this week that the central bank could raise interest rates sooner than previously thought.
- The strength in the Canadian dollar is pretty much in line with the narrowing of the US-Canada 10-year yield spread.
- Technical indicators on daily charts are biased lower, RSI and Stochs point south.
- Bearish Stochastics divergence seen on weekly charts, RSI is biased lower, while Stochs are on verge of rollover from overbought levels.
Support levels - 1.4828 (50-DMA), 1.47, 1.4670 (38.2% Fib)
Resistance levels - 1.4944 (50% Fib), 1.4962 (5-DMA), 1.5083 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-slips-below-50-Fib-50-DMA-at-14818-in-sight-stay-short-752504) has hit TP1.
Recommendation: Book partial profits at lows, target 1.4670 on decisive break below 50-DMA.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 68.102 (Neutral), while Hourly CAD Spot Index was at 80.6527 (Slightly bullish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
