Scope for further downside in EUR/CAD, sell rallies
EUR/CAD is seen extending decline from multi-year highs at 1.6105 hit on Jan 20th, we see scope for further downside.
Unexpected dovish tone at Draghi’s press conference on Thursday has opened the door to a generalized EUR weakness, while rebound in oil prices will support the loonie.
Momentum studies lean bearish, Stochs and RSI have reversed from oversold territory and MACD shows bearish crossover of MACD line over signal line.
5 & 10 DMAs have curved lower, bearish invalidation only above 1.5687 (5-DMA), support on the downside lies at 1.5298 (Jan 11 lows).
We would sell any rallies in the pair around 1.5440 levels, SL: 1.5525, TP: 1.53
Unexpected dovish tone at Draghi’s press conference on Thursday has opened the door to a generalized EUR weakness, while rebound in oil prices will support the loonie.
Momentum studies lean bearish, Stochs and RSI have reversed from oversold territory and MACD shows bearish crossover of MACD line over signal line.
5 & 10 DMAs have curved lower, bearish invalidation only above 1.5687 (5-DMA), support on the downside lies at 1.5298 (Jan 11 lows).
We would sell any rallies in the pair around 1.5440 levels, SL: 1.5525, TP: 1.53
Trade closed: target reached