FxWirePro: EUR/CAD slips below 1.55 handle, good to sell rallies

EUR/CAD upside run seems to have stalled at 1.5914 highs on Thursday, 11th Feb, pair slips below 1.55 handle.

• Price action on the day has been rejected at highs by 1.5590 and the pair has edged lower, broken below 10-DMA at 1.5537.
   
• The following technical factors support our view for downside correction in the pair:
  - Formation of an inverted hammer at highs
  - Bearish stochastics crossover from overbought territory
  - RSI turns lower from 62 levels, points south
   
• Immediate support is seen at 1.5429 (Feb 8th lows), while resistance is located at 1.5644 (5-DMA).

Recommendation: Good to sell rallies around 1.55, SL: 1.5650 TP:1.5240/1.52