EUR/CAD Price Forecast: Falls toward 1.4750 due to continued bearish price momentum
EUR/CAD may navigate the region around the psychological level of 1.4700.
The 14-day RSI indicates sustained bearish momentum, hovering slightly above the 30 level.
The cross may test the area near the “pullback resistance” around the 1.4870 level.
EUR/CAD extends its losing streak to a fifth consecutive session, trading near the 1.4770 level during early European trading hours on Thursday. Daily chart technical analysis points to waning short-term momentum, with the nine-day Exponential Moving Average (EMA) positioned below the 14-day EMA.
Meanwhile, the 14-day Relative Strength Index (RSI), a widely used indicator for gauging overbought or oversold conditions, is currently just above the 30 mark. This suggests ongoing bearish momentum without confirming a fully oversold condition.
If the RSI falls below 30, traders may look for signs of an upward correction. A rebound from oversold levels could drive the pair back toward the 1.4800-1.4850 range, where sellers may once again challenge the strength of any recovery attempt.
On the downside, key support is positioned at 1.4700, a level of particular significance for technical traders. This support could either act as a buffer, potentially slowing further decline, or, if decisively broken, reinforce the bearish trend. A break below 1.4700 could open the door for EUR/CAD cross to approach its seven-month low of 1.4587.
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