FxWirePro: Inverted hammer at highs indicates downside for EUR/CAD, good to sell rallies

EUR/CAD upside run seems to have stalled at 1.5914 highs on Thursday, pair was rejected at highs and closed lower 1.5777.

• The following technical factors support our view for downside correction in the pair:
  
  - Formation of an inverted hammer at highs
  - Bearish stochs crossover from overbought territory
  - RSI turns lower from 62 levels, points south
   
• Also we have seen some relief in oil prices which are slightly higher on the day, providing some support for the Loonie.
   
• 5-DMA at 1.5690 is immediate support on the downside, while 1.5875 (Jan 21st highs) is immediate resistance.
   

Recommendation: Good to sell rallies around 1.5725/30, SL: 1.5920 TP:1.5570/1.5520/1.54