EUR/CAD Price Analysis: Buyers try to reclaim 20-day SMA after bearish crossover

EUR/CAD rose by 0.26% on Friday.
A break and close below 1.4800 could signal further bearish momentum in the short term.

Patricio Martín FXStreet

The EUR/CAD pair saw a slight uptick in Friday's session, climbing by 0.26% to reach 1.4825. However, despite this modest gain, the pair remains below its 20-day Simple Moving Average (SMA), having recently completed a bearish crossover between the 20 and 200-day SMAs. While buyers attempt to reclaim the 20-day SMA, indicators suggest a struggle, with the Relative Strength Index (RSI) recovering buying pressure and the Moving Average Convergence Divergence (MACD) indicating rising buying pressure and overall bullish momentum.

However, until the pair breaks above 1.4800, the short-term outlook remains negative. The mentioned crossover, combined with momentum not being entirely recovered, suggests that further gains may be limited.

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.

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