FxWirePro: EUR/CAD trades narrow range above 5-DMA, caution ahead of ECB

• EUR/CAD is trading a narrow range ahead of ECB rate decision.
   
• Market expectations of some announcement regarding the ongoing QE programme have been bolstering the pair’s rally in past weeks.
   
• Disappointment could weigh on the euro, dragging the pair lower.
   
• The pair is holding above 5-DMA at 1.4546, break below will find next major support by rising trendline at 1.4510.
   
• Bullish divergence seen on RSI and Stochs. Raises scope for test of 20-DMA at 1.4716.
   

Support levels - 1.4546 (5-DMA), 1.4510 (trendline), 1.4437 (200-DMA)

Resistance levels - 1.46, 1.4695 (38.2% Fib retrace of 1.3784 to 1.5258 rally), 1.4715 (20-DMA)

Recommendation: We prefer to wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 18.8299 (Neutral), while Hourly CAD Spot Index was at -88.9798 (Slightly bearish) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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