FxWirePro: EUR/CAD finds major support at 1.47, good to go short on break below

• EUR/CAD is trading in a narrow range as markets await EZ PMI and retail sales data.
   
• The pair finds major trendline support at 1.47, break below to see further downside.
   
• The pair has closed below 50-DMA in last week's trade which raises scope for downside.
   
• 5-DMA is sharply lower and RSI and Stochs support downside. We see Doji formation on previous day's candle.
   
• 200-DMA at 1.4485 is bear target. Further downside only on break below.
   
• Retrace above 50-DMA at 1.4774 could see minor reversal upto 1.4815 (5-DMA). Bearish invalidation on retrace above 100-DMA.
   
• Technical studies on weekly charts are also mildly bearish. Upside was rejected at trendline at 1.50. Weekly 5-SMA has turned lower and weighs on the upside.

Support levels - 1.47 (trendline), 1.4670 (38.2% Fib of 1.6105 to 1.3784), 1.4485 (200-DMA)

Resistance levels - 1.48, 1.4828 (weekly 5-SMA), 1.4855 (100-DMA)

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-bounces-off-major-trendline-support-at-147-eyes-200-DMA-at-14483-on-break-below-880725).

Recommendation: Stay short for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -32.2816 (Bearish), while Hourly CAD Spot Index was at 128.593 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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