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
