EUR/CAD to eye 50-Day SMA on break below April opening range
EUR/CAD approaches the monthly low (1.4580) as it weakens for the third consecutive day, and the exchange rate may fall towards the 50-Day SMA (1.4575) as it carves a series of lower highs and lows.
It remains to be seen if EUR/CAD will respond to the positive slope in the moving average as the Relative Strength Index (RSI) sits at its lowest reading since February, but failure to defend the opening range for April may foreshadow a further decline in the exchange rate as the bullish momentum abates.
EUR/CAD Rate Outlook
A break/close below the 1.4600 (38.2% Fibonacci retracement) to 1.4640 (23.6% Fibonacci extension) may push EUR/CAD towards the monthly low (1.4580), with a move below the 50-Day SMA (1.4575) raising the scope for a run at the March low (1.4383).
Nevertheless, EUR/CAD may track the positive slope in the moving average if it continues to hold above the monthly low (1.4580), with a move above 1.4770 (50% Fibonacci extension) bringing the 1.4890 (38.2% Fibonacci extension) area back on the radar.
Additional Resources:
EUR/USD forecast: April 2022 high offers resistance
--- Written by David Song, Strategist
DavidJSong
It remains to be seen if EUR/CAD will respond to the positive slope in the moving average as the Relative Strength Index (RSI) sits at its lowest reading since February, but failure to defend the opening range for April may foreshadow a further decline in the exchange rate as the bullish momentum abates.
EUR/CAD Rate Outlook
A break/close below the 1.4600 (38.2% Fibonacci retracement) to 1.4640 (23.6% Fibonacci extension) may push EUR/CAD towards the monthly low (1.4580), with a move below the 50-Day SMA (1.4575) raising the scope for a run at the March low (1.4383).
Nevertheless, EUR/CAD may track the positive slope in the moving average if it continues to hold above the monthly low (1.4580), with a move above 1.4770 (50% Fibonacci extension) bringing the 1.4890 (38.2% Fibonacci extension) area back on the radar.
Additional Resources:
EUR/USD forecast: April 2022 high offers resistance
--- Written by David Song, Strategist
DavidJSong
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