On Friday, the EUR / CAD pair registered a marginal increase, reaching the level of 1.4825 with a gain of 0.26%. However, the pair still remained below its 20-day Simple Moving Average (SMA), technically indicating that the bearish environment persists. The recent bearish crossover between the 20-day and 200-day SMA has reinforced this position.
The technical analysis
The RSI (Relative Strength Index) shows that the buying pressure is improving somewhat.
Although the MACD (Moving Average Convergence Divergence) indicates that the bullish pressure is increasing, there is absolutely no improvement.
The level of resistance and support
The resistance level of 1.4800 is considered important. If the pair wins at this level, a short-term boom may appear. Otherwise, the pair can fall to the base level of 1.4700.
Emotional and Market Influences
The pair’s next trajectory will be driven by oil prices and economic events in the eurozone, which influence the Canadian dollar. Traders should keep an eye on the developments in the energy market and the policies of central banks.
The current outlook for EUR / CAD is negative, and the bearish trend is likely to continue unless there is a significant change in market momentum.
