EUR/CAD Price Forecast :Depreciates to near 1.4800, tests oversold levels

EUR/CAD may find immediate support at the psychological level of 1.4800.

The 14-day RSI signals sustained bearish momentum as it remains slightly above the 30 level.

The pair may explore the area around a “pullback resistance” at the 1.4870 level.

The EUR/CAD cross struggles to rebound from three consecutive days of losses, trading around the 1.4810 mark during the Asian hours on Wednesday. A technical analysis of a daily chart indicates a strong bearish momentum, with indicators suggesting that sellers are still firmly in control of the market. However, oversold conditions may be approaching, hinting at the possibility of a short-term correction.

On the daily chart, EUR/CAD is trading below the nine-day Exponential Moving Average (EMA), which has been serving as a dynamic resistance line over recent sessions. The nine-day EMA has also diverged below the 14-day EMA, creating a "bearish crossover" that reflects weakening short-term momentum and solidifying the pair’s downward trajectory.

The 14-day RSI, a popular tool for identifying overbought or oversold conditions, currently sits slightly above the 30 level. This placement signals sustained bearish momentum without fully confirming an oversold condition. Should the RSI drop below the critical 30 mark, traders may look for signs of an upward correction. A bounce from oversold conditions could bring the pair back toward the 1.4850-1.4900 range, where sellers may once again test the resilience of any recovery attempt.