- EUR/CAD edges higher after 4th straight weeks of declines. Momentum still with the bears.
- Price has retraced from 8-week lows at 1.5463 and has broken above 5-DMA at 1.5548.
- Technical studies support further weakness in the pair with no clear indications of a reversal.
- That said, Stochs are at oversold levels and rollover into neutral territory cloud see some upside.
- Weekly charts are bearish. RSI and Stochs have rolled over from overbought levels.
- The major is currently hovering around 1.5562, close above 5-DMA will see test of 20-DMA at 1.5743.
- On the flipside, we see strong support at 100-DMA at 1.5455, weakness only on break below.
- Violation at 100-DMA raises scope for test of 200-DMA at 1.5118. We see bearish invalidation on retrace above 1.5743 (converged 50 and 20 DMAs).
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 32.9642 (Neutral), while Hourly CAD Spot Index was at 32.4155 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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