- EUR/CAD pauses upside after hitting 9-week highs at 1.4994 on Tuesday.
- The pair has bounced off weekly 200-SMA and is on track to test trendline resistance at 1.5260.
- Technical studies are bullish, we note bullish divergence from price action on RSI and Stochs supports upside.
- Scope for test of trendline at 1.5160. Breach there could see extension of gains upto 1.5252.
- On the flipside, we see bullish invalidation on break below 20-DMA at 1.4697. Drag till 200-DMA at 1.4453 then likely.
Support levels - 1.4804 (50-DMA), 1.4697 (20-DMA), 1.4453 (200-DMA)
Resistance levels - 1.4908 (5-DMA), 1.50, 1.5105 (May 30 high), 1.5151 (May 5 high), 1.5160 (trendline)
Call update: We had advised a long call (http://www.econotimes.com/FxWirePro-Bullish-divergence-on-EUR-CAD-good-to-go-long-on-dips-841594).
Recommendation: We recommend staying long on dips.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -128.196 (Bearish), while Hourly CAD Spot Index was at 58.9296 (Neutral) at 0950 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
