FX.co ★ Technical analysis of EUR/CAD for May 10, 2016

After the descending channel breakout, EUR/CAD reached the 100% Fibs applied to the channel breakout point. This was the final upside target and daily close was below R1 (1.4785) that suggests that resistance was rejected.

At the same time, the price formed a bearish divergence on the RSI oscillator adding additional confirmation to the potential corrective wave down.

Consider selling EUR/CAD on small pullbacks near R1 to target one the support levels, ether S1 (1.4555), S2 (1.4480) or S3 (1.4410). Stop loss should be well above the 1.4800 psychological resistance level.

Support: 1.4555, 1.4480, 1.4410

Resistance: 1.4785