EUR/CAD Price Analysis: Pair pushed higher, aiming to break above the 200-day SMA
- Wednesday's session saw the EUR/CAD pair rise by 0.51% to 1.4815.
- The pair is on its way to test the 200-day SMA following a jump in the early part of the session.
- A looming bearish crossover between the 20 and 200-day SMA at 1.4850 could reject the buyers.
The EUR/CAD rose by 0.51% to 1.4815 in Wednesday's session and is on its way to test the 200-day Simple Moving Average (SMA) following a jump in the early part of the day. The cross has made a new stride to conquer the key 200-day SMA at 1.4850 which in case of conquering it would improve the outlook. The Relative Strength Index (RSI) is recovering, while the Moving Average Convergence Divergence (MACD) is rising, suggesting that the overall momentum is mixed.
The EUR/CAD pair maintains a positive trend, supported by recovering buying pressure. The RSI indicates bullish momentum, but the MACD suggests increasing selling pressure, resulting in a mixed outlook. However, the pair's attempts to break above the 200-day SMA could boost bullish sentiment. Traders need to be cautious of a potential bearish reversal if the 20 and 200-day SMAs cross over at 1.4850, threatening the buyers' progress.
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.
