FX.co ★ Technical analysis of EUR/CAD for July 31, 2015

IMPACT ON EURO:

The International Monetary Fund and Greece did not reach an agreement on a new debt plan. Greece and Europe is ready to make the relevant decisions but it will take time. The IMF officials can only support a comprehensive rescue package for Greece. The IMF Board of Directors will discuss arrangements for the new Greek aid plan next Wednesday.

CAD: Lower oil prices have been putting the CAD to lower levels.

Today, traders will keep an eye on Canada's GDP data, the readings is likely to be pessimistic.

Technical view:

The cross rejected at the weekly parallel resistance level on Monday and was falling for three consecutive days. The 20Dsma is at 1.4150, trading at 1.4226 at the Asian session.

The cross started making lower lows and lower highs on the H1 chart. The nearest support is at 1.4170 and 1.4160. Resistance is at 1.4250, 1.4270, and 1.4310. Earlier, the cross fell below the bearish head and shoulder pattern. The shoulder highs are placed at 1.4337 and 1.4346.

The hourly momentum indicators are giving sold signs. On the H1 chart we can observe positive divergence.

Intraday buying is available above 1.4300, aimed at 1.4320 and 1.4340. Strong bullish momentum is only available above 1.4350. Selling available is below 1.4200 aimed at 1.4160 initially, later likely to extend towards 1.4110 and 1.4060. Safe selling is available only below 1.4150.

NOTE: 20dsma is at 1.4150.