FxWirePro: EUR/CAD extends weakness for the 4th straight session, bias bearish

EUR/CAD chart on Trading View used for analysis

• EUR/CAD extends grind lower, trades 0.10% weaker at 1.4972 at 0530 GMT.
   
• The pair is hovering around 78.6% Fib at 1.4944, momentum bearish.
   
• Price action is below major moving averages and Stochs and RSI are sharply lower.
   
• Focus now on Eurozone December industrial production data. Prints below estimates could add to fears of a deeper slowdown across the 17-nation bloc.
   
• Technical studies support downside and next major support lies at 78.6% Fib at 1.4944 ahead of 1.4890 (trendline).
   
• Break above 5-DMA at 1.5015 could see upside till 21-EMA. Breakout above 200-DMA negates bearish bias.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-recovery-capped-at-21-EMA-scope-for-test-of-786-Fib-good-to-stay-short-on-upticks-1496284) is progressing well.

Recommendation: Bias bearish, stay short for targets. 

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.