- EUR/CAD is extending range trade on the day after the pair failed to close below 50-DMA on Wednesday's trade.
- Spinning top formation was seen at lows on Wednesday's daily candle, could see some consolidation at current levels.
- Bearish RSI divergence keeps downside bias intact. Break below 50-DMA targets 1.4670 (38.2% Fib).
- Bank of Canada Governor Stephen Poloz said this week that the central bank could raise interest rates sooner than previously thought.
- Technical indicators on daily charts are biased lower, RSI is below 50 and points south.
- Stochs are at oversold levels which could see some pull back in the pair.
- Bearish Stochastics divergence seen on weekly charts, RSI is biased lower, while Stochs are on verge of rollover from overbought levels.
Support levels - 1.4840 (50-DMA), 1.4776 (June 14 low), 1.47, 1.4695 (38.2% Fib of 1.3774 to 1.5258 rally)
Resistance levels - 1.4910 (23.6% Fib & 10-DMA), 1.4960 (Nov 4 2016 high), 1.50
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-CAD-slips-below-50-Fib-50-DMA-at-14818-in-sight-stay-short-752504) has hit TP1.
Recommendation: Book partial profits at lows, target 1.4670 on decisive break below 50-DMA.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -45.5172 (Neutral), while Hourly CAD Spot Index was at 49.5723 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
