FxWirePro: 'Shooting Star' formation on EUR/CAD raises scope for downside, focus on ECB for further impetus

• EUR/CAD retraces from multi-month highs at 1.5372 hit last week, eyes 20-DMA at 1.5023.
   
• A big beat in Canada monthly GDP and employment data on Friday lifts CAD sharply higher.
   
• Canadian economic growth stood at 0.2% m/m in Sept and overall third-quarter GDP growth stood at 1.7%.
   
• The number of employed people jumped 79.5K in November and the unemployment rate dropped to 5.9% during the reported period.
   
• Technical indicators have turned bearish. RSI and Stochs have turned lower and MACD is on verge of bearish crossover on signal line.
   
• We evidence a 'Shooting Star' formation on last week candle which raises scope for downside in the pair.
   
• 20-DMA at 1.5023 is immediate support, break below will see drag till 50-DMA at 1.4883.
   
• On the flip side, 5-DMA at 1.5183 is immediate resistance, resumption of upside likely on close above.
   
• The pair will continue to get influenced by Eurozone Sentix Investor Confidence gauge.
   
• Also, Focus will be on the EU/UK meeting in the Brexit deadline along with ECB policy meeting for further impetus.

Support levels - 1.5031 (5W-SMA), 1.5023 (20-DMA), 1.4883 (50-DMA)

Resistance levels - 1.51, 1.5184 (5-DMA), 1.52

Recommendation: Good to go short on rallies around 1.5080/ 1.51, SL: 1.5185, TP: 1.5030/ 1.50/ 1.49/ 1.4885

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -81.9529 (Bearish), while Hourly CAD Spot Index was at 116.168 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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