FxWirePro: EUR/CAD slump post BOC surprise rate hike supported at 200-DMA, further weakness likely on break below

• EUR/CAD saw massive slump overnight after BOC surprised markets with a rate hike at its policy meet.
   
• CAD spiked across the board on the Bank of Canada's surprise decision to hike its policy rate by 25 bps to 1% on Wednesday.
   
• EUR/CAD has broken out of symmetric triangle pattern after violation at triangle base.
   
• Downside was supported at 200-DMA at 1.4487, the pair has bounced off from lows to close above 200-DMA.
   
• Technical studies are bearish, scope for further downside on break below 200-DMA.
   
• Today's economic calendar will feature Ivey PMI from Canada, which is expected to improve to 61.3 from 60 in August.
   
• Caution also prevails ahead of the crucial ECB policy meet due later today. Hawkish rhetoric from Draghi could buoy EUR bulls.

Support levels - 1.4502 (Weekly 200-SMA), 1.4488 (200-DMA), 1.4347 (61.8% Fib of 1.3783 to 1.5258 rally)

Resistance levels - 1.46, 1.4670 (5-DMA), 1.47 (trendline support turned resistance)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-bounces-off-major-trendline-support-at-147-eyes-200-DMA-at-14483-on-break-below-880725) has hit all targets.

Recommendation: Book full profits at lows. Watch out for break below 200-DMA to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -72.1558 (Slightly bearish), while Hourly CAD Spot Index was at 131.293 (Bullish) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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