The EUR/CAD currency pair is currently experiencing a slight bullish trend, as analysis of the daily chart indicates. The pair is testing initial resistance around the nine-day Exponential Moving Average (EMA) at 1.4895, coinciding with the psychologically significant level of 1.4900. Presently, EUR/CAD is trading near 1.4880, having declined for the second consecutive session during the Asian trading hours.
Despite the recent downturn, technical indicators suggest a generally positive outlook for the currency pair. The 14-day Relative Strength Index (RSI) has settled just below the neutral 50 level, hinting at a balance between buying and selling pressure. A rise above the 50 level could indicate a strengthening bullish momentum, which might propel EUR/CAD towards the 1.4950 to 1.5050 range, where sellers may once again challenge any upward movement.
Resistance levels for the pair are established with the initial hurdle at 1.4895, alongside further resistance at the 14-day EMA, situated at 1.4903. A strong move above this resistance zone would support the bullish outlook, potentially allowing the pair to reach December’s high of 1.5060.
On the downside, significant support can be found near the lower boundary of the ascending channel, around the 1.4800 level. This support region could act as a cushion against further declines. However, should the pair break through this support decisively, it would suggest a shift towards a bearish bias, opening the possibility for EUR/CAD to test the psychological level of 1.4700. Market participants are closely monitoring these technical levels as they evaluate future movements in this currency pair.
