- EUR/CAD grinds higher along 5-DMA support, intrday bias higher.
- The pair has edged above minor trendline resistance at 1.5230, but is struggling to extend gains.
- Price action extends in Rising Wedge pattern and we see scope for test of Wedge top at 1.54 levels.
- Breakout at Wedge top could propel the pair higher. Technical studies suggest further upside.
- On the flipside, close below 5-DMA at 1.5282 could see drag upto 20-DMA at 1.5124. Violation at 20-DMA could see further bearishness.
Support levels - 1.5282 (5-DMA), 1.52 (minor trendline resistance turned support), 1.5124 (20-DMA)
Resistance levels - 1.5357 (Dec 1 high), 1.5372 (Nov 30 high), 1.54 (Wedge top)
Call update: Our previous call has hit all targets.
Recommendation: Book partial profits, trail stop loss to 1.5280, hold for 1.54 levels.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -42.6122 (Neutral), while Hourly CAD Spot Index was at 11.6421 (Neutral) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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