EUR/CAD Price Forecast: Maintains position below nine-day EMA near 1.4900
- EUR/CAD may gain ground as the daily chart analysis suggests a mild bullish bias.
- The 14-day RSI maintains its position near the 50 mark, indicating neutral momentum.
- The pair tests initial resistance near the nine-day EMA at the 1.4895 level, aligned with the psychological level of 1.4900.
EUR/CAD continues to decline for the second consecutive session, trading near 1.4880 during Tuesday's Asian session. Technical analysis on the daily chart suggests a mildly bullish bias, as the pair remains within an ascending channel pattern.
However, the 14-day Relative Strength Index (RSI), a key indicator of overbought or oversold conditions, is maintaining its position slightly below the 50 mark, indicating neutral momentum. A move above this level would confirm the ongoing bullish trend.
If the RSI surpasses 50, traders may look for signs of a strengthening upward movement, potentially driving EUR/CAD towards the 1.4950-1.5050 range, where selling pressure could once again test the strength of the rally.
On the upside, EUR/CAD faces initial resistance near the nine-day Exponential Moving Average (EMA) at the 1.4895 level, followed by the 14-day EMA at 1.4903. A decisive break above this critical resistance zone would strengthen the bullish bias, potentially propelling the currency pair toward December's high at the 1.5060 level.
The primary support lies around the ascending channel's lower boundary at the 1.4800 level. This support could act as a buffer, slowing any further decline. However, if this level is decisively broken, it would reinforce the bearish bias, opening the door for the EUR/CAD cross to approach the psychological 1.4700 level.
EUR/CAD: Daily Chart
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
