EUR/CAD is seen extending decline from multi-year highs at 1.6105 hit on Jan 20th, we see scope for further downside.
- Unexpected dovish tone at Draghi's press conference on Thursday has opened the door to a generalized EUR weakness, while rebound in oil prices will support the loonie.
- Momentum studies lean bearish, Stochs and RSI have reversed from oversold territory and MACD shows bearish crossover of MACD line over signal line.
- 5 & 10 DMAs have curved lower, bearish invalidation only above 1.5687 (5-DMA), support on the downside lies at 1.5298 (Jan 11 lows).
Recommendation: Sell any rallies in the pair around 1.5440 levels, SL: 1.5525, TP: 1.53
