- The Canadian dollar supported by BoC positive statements post meeting where it held rates unchanged overnight.
- Brent oil regained bid tone in Asia to trade above the $54.00 mark on speculation the OPEC is set to extend the oil output cut deal by nine months.
- Oil prices up over 1% on the day, keep the CAD buoyed. Investors largely ignored a smaller-than-expected US gasoline stocks draw.
- ECB President Mario Draghi reiterated that there is no need to deviate from the current monetary policy stance denting market expectations.
- Draghi's comments weighed on the euro, dragging EUR/CAD lower on Wednesday.
- EUR/CAD remains capped below 61.8% Fibo 1.6105 to 1.3784 fall at 1.5218. Upside only on break above.
- Further, price action is showing a bearish divergence from RSI and Stochs which adds to the downside bias.
Support levels - 1.5010 (20-DMA), 1.4944 (50% Fibo 1.6105 to 1.3784 fall), 1.49, 1.4823 (May 10 low)
Resistance levels - 1.5102 (5-DMA), 1.5218 (61.8% Fib), 1.5281 (Nov 9 high)
Recommendation: Watch out for break below 20-DMA to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 16.7701 (Neutral), while Hourly AUD Spot Index was at -4.13061 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
