• EUR/CAD declined sharply on Thursday as the euro attracted sellers after data painted a bleak economic picture for the euro zone.
• The closely watched HCOB Composite Purchasing Managers' Index (PMI) for the eurozone declined to 49.5 in May from 50.4 in April, slipping below the 50 threshold that separates growth from contraction..
• The decline is notable as it was driven by the services sector, which has fueled recent growth. However, economists urge caution, citing disruption from shifting U.S. trade policies.
• At GMT 16:03,the euro was down 0.59% at 1.5637against Canadian dollar ,its lowest level since 19th May .
• Technical signals are bearish as RSI is heading down at 49, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.5718(38.2%fib), any close above will push the pair towards 1.5818(Higher BB).
• Support is seen at 1.5543 (50%fib) and break below could take the pair towards 1.5493(Lower BB).
Recommendation: Good to sell around 1.5650 , with stop loss of 1.5750 and target price of 1.5580
