• FxWirePro: EUR/CAD struggles at 1.61 handle, close below 5-dma could see minor weakness

    Source: FxWire Pro - Technicals / 08 Mar 2018 06:22:10   Eastern Standard Time

    • EUR/CAD hits fresh 8-1/2 year highs at 1.6122 before paring some gains.
    • The pair is currently hovering around 1.60 handle, finds strong support at 1.5970 (converged trendline and 5-DMA).
    • The pair trades with a major bullish bias and momentum studies are also bullish.
    • Price action holds above major moving averages and RSI is nicely converging with price action.
    • MACD is above zero and biased higher which supports uptrend in the pair.
    • We see scope for test of channel top at 1.6835 and we see bullish invalidation on decisive break below 200-DMA.
    • Focus now on ECB policy meet for further impetus.

    Support levels - 1.5970 (5-DMA), 1.5680 (20-DMA), 1.5398 (50-DMA)

    Resistance levels - 1.61, 1.6122 (Mar 7 high), 1.6326 (July 2009 high), 1.6835 (channel top)

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-breaks-channel-top-at-157-eyes-161-levels-stay-long-1185177) has hit TP1.

    Recommendation: Bias higher, stay long.

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