EUR/CAD Price Analysis: Bears rejected pair at 20-day and 200-day SMA convergence
- EUR/CAD shed 0.30% on Thursday to trade near 1.4770.
- The cross faced rejection at the 20-day and 200-day SMA convergence at around 1.4800, completing a bearish crossover.
- The bearish crossover tends to be bearish sign, hinting at further weakness in the pair.
The EUR/CAD fell by 0.30% on Thursday, reaching approximately 1.4770. The convergence of the 20-day and 200-day Simple Moving Averages (SMAs) around 1.4800 was rejected the cross, which resulted in a bearish crossover. This bearish crossover may suggest more weakness in the pair.
Technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), substantiate the bearish momentum in EUR/CAD's recent price action. The RSI, currently in negative territory, shows increasing selling pressure with a declining slope, suggesting a rise in bearish sentiment. Meanwhile, the MACD, though flat, remains in red, indicating sustained selling pressure.
The EUR/CAD pair has been facing strong resistance at the confluence of its 20-day and 200-day SMAs, leading to a bearish crossover. This signals potential weakness in the pair in the coming sessions as it may invalidate it latest strides to recover.
EUR/CAD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
