Fxwirepro: Eur/cad capped Below 61.8% Fib, Bearish Divergence Adds Downside Bias

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• Upbeat Euro area PMI reports and German IFO data continue to underpin the Euro.
   
• The Canadian dollar buoyed as oil extends upside to hit multi-week highs at 51.76.
   
• EUR/CAD remains capped below 61.8% Fibo 1.6105 to 1.3784 fall at 1.5218. Upside only on break above.
   
• Looking ahead, all eyes remain on the ECB Draghi’s speech due later today for fresh hints on tapering.
   
• Draghi’s failure to provide any cues on exiting the ultra-loose monetary policy program will weigh on the euro.
   
• Further, price action is showing a bearish divergence from RSI and Stochs which adds to the downside bias.

Support levels – 1.5082 (1H 200-SMA), 1.5002 (20-DMA), 1.4944 (50% Fibo 1.6105 to 1.3784 fall)

Resistance levels – 1.5126 (5-DMA), 1.5218 (61.8% Fib), 1.5281 (Nov 9 high)

Recommendation: Watch out for break below 20-DMA to go short.

FxWirePro Currency Strength Index: FxWirePro’s Hourly EUR Spot Index was at 19.4627 (Neutral), while Hourly CAD Spot Index was at 28.6817 (Neutral) at 0615 GMT. For more details on FxWirePro’s Currency Strength Index, visit http://ift.tt/2fd4Y8T.

The material has been provided by InstaForex Company – www.instaforex.com

May 24, 2017 at 12:13PM

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