- Markets wary ahead of ECB policy meeting, EUR/CAD is trading a narrow range.
- The pair slipped below 5-DMA on Wednesday's trade, which is capping upside on the day.
- Bullish divergence seen on RSI and Stochs. Raises scope for test of 20-DMA at 1.4716.
- But weekly charts are bearish. The pair was rejected at weekly 5-SMA at 1.4671.
- Gravestone Doji formation seen on weekly candle adds downside support.
Support levels - 1.4510 (trendline), 1.4477 (weekly 100-SMA), 1.4436 (200-DMA)
Resistance levels - 1.4543 (5-DMA), 1.46, 1.4673 (weekly 5-SMA), 1.4695 (38.2% Fib retrace of 1.3784 to 1.5258 rally)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 64.2479 (Neutral), while Hourly CAD Spot Index was at 72.5235 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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