- EUR/CAD has failed to show a decisive break above 4H 100-SMA currently at 1.4664.
- We see scope for test of trendline support at 1.4480 levels.
- Technical indicators on 4-hourly charts are bearishly aligned. Stochs have retraced from near overbought levels and RSI is biased lower.
- Weekly charts are bearish. The pair was capped at weekly 5-SMA at 1.4640.
- France composite PMI disappoints on the downside, weighing on the euro. Focus shall remain on German and EZ PMIs for further impetus.
Support levels - 1.4510 (trendline), 1.4481(weekly 200-SMA), 1.4437 (200-DMA)
Resistance levels - 1.4640 (weekly 5-SMA), 1.4685 (20-DMA), 1.4695 (38.2% Fib retrace of 1.3784 to 1.5258 rally)
Recommendation: Good to go short on rallies around 1.4630/40, SL: 1.47, TP: 1.46/ 1.45/ 1.4480
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