- EUR/CAD has bounced off strong support at 200-DMA, we see weakness only on break below.
- Euro held gains after ECB began to pave way to tapering stimulus plan after leaving rates on hold.
- The pair is trading in a narrow range today and we see a Doji formation on previous session's candle.
- Technical studies are bearish, the pair has breached symmetric triangle pattern, bias lower.
- Scope for further downside on break below 200-DMA, test of 61.8% Fib at 1.4347 then likely.
- Later during the NA session focus would be on the latest Canadian employment details for the month of August for further impetus.
Support levels - 1.4490 (200-DMA), 1.4347 (61.8% Fib of 1.3783 to 1.5258 rally), 1.4312 (weekly cloud base)
Resistance levels - 1.46, 1.4642 (5-DMA), 1.4695 (38.2% Fib)
Recommendation: Watch out for break below 200-DMA to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -50.2109 (Neutral), while Hourly CAD Spot Index was at 81.5374 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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