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FxWirePro: EUR/CAD struggles at 1.61 handle, close below 5-DMA could see minor weakness

EUR/CAD hits fresh 8-1/2 year highs at 1.6122 before paring some gains. The pair is currently hovering around 1.60 handle, finds strong support at 1.5970 (converged trendline and 5-DMA). The pair trades with a major bull…

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FxWirePro: EUR/CAD struggles at 1.61 handle, close below 5-DMA could see minor weakness
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  • EUR/CAD hits fresh 8-1/2 year highs at 1.6122 before paring some gains.
     
  • The pair is currently hovering around 1.60 handle, finds strong support at 1.5970 (converged trendline and 5-DMA).
     
  • The pair trades with a major bullish bias and momentum studies are also bullish.
     
  • Price action holds above major moving averages and RSI is nicely converging with price action.
     
  • MACD is above zero and biased higher which supports uptrend in the pair.
     
  • We see scope for test of channel top at 1.6835 and we see bullish invalidation on decisive break below 200-DMA.
     
  • Focus now on ECB policy meet for further impetus.

Support levels - 1.5970 (5-DMA), 1.5680 (20-DMA), 1.5398 (50-DMA)

Resistance levels - 1.61, 1.6122 (Mar 7 high), 1.6326 (July 2009 high), 1.6835 (channel top)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-breaks-channel-top-at-157-eyes-161-levels-stay-long-1185177) has hit TP1.

Recommendation: Bias higher, stay long.

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