- EUR/CAD is trading 0.16% higher on the day at 1.5241 as traders await German inflation data.
- German CPI is expected to rise 0.4 percent m/m in July from June's print of 0.1 percent. Any beat on expectation could see spike in euro.
- The pair has failed to close below 1.52 handle and has shown a 'Doji' formation on Friday's trade, raising scope for further upside.
- That said, other technical indicators for the pair are weak. Price action has dipped below daily cloud and 200-DMA.
- Momentum bearish, RSI and Stochs sharply lower. MACD has shown a bearish crossover on signal line and we see -ve DMI dominance.
- We do not see any major signs of reversal and expect dip till 61.8% Fib at 1.5095.
- On the flipside, upbeat data with breakout above 5-DMA could see test of 50-DMA at 1.5292. Breach there will see test of 200-DMA at 1.5339.
Support levels - 1.5199 (55W EMA), 1.5149 (May 10 low), 1.5095 (61.8% Fib), 1.5053 (May 17 low)
Resistance levels - 1.5271 (5-DMA), 1.5292 (50-DMA), 1.5339 (200-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -142.275 (Bearish), while Hourly CAD Spot Index was at 135.338 (Bullish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
