- EUR/CAD edges higher after forming a Doji at lows on Thursday's trade.
- The pair is trading 0.23% higher on the day, but upside seems to lack traction.
- The pair finds stiff resistance at 200-DMA at 1.52 and we see bearish invalidation only on breakout above.
- The major has breached major supports at 200-DMA, major trendline at 1.5250 and 55W SMA at 1.5152.
- Technical studies support further weakness. RSI on weekly charts below 50 and biased sharply lower.
- Momentum studies bearish, stochs heavily in oversold territory. MACD shows bearish crossover on signal line.
- We see scope for weakness till 50% Fib at 1.4968. Breach there could see further downside.
Support levels - 1.4896 (110W EMA), 1.4736 (Nov 2017 low), 1.4442 (Sept 2017 low)
Resistance levels - 1.5152 (55W EMA), 1.52 (converged 5 and 200-DMA), 1.5345 (21-EMA), 1.5375 (20-DMA)
Recommendation: Good to go short on rallies around 1.5150, SL: 1.5375, TP: 1.50/ 1.49/ 1.4740
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