EUR/CAD Price Analysis: Pair facing oversold conditions, correction likely
- EUR/CAD retreated by 0.30% to 1.4785.
- Indicators continued to lose ground as the pair fell to lows since July.
- RSI and MACD indicators suggest a bearish outlook, with rising selling pressure but an upwards correction might me coming.
The EUR/CAD pair witnessed a decline of 0.30% on Tuesday, reaching a low of 1.4785, the lowest level since July. Indicators continued to deteriorate, with both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) pointing towards a bearish trend, indicating increasing selling pressure.
As mentioned, the pair's bearish outlook is supported by technical indicators, including the RSI, which currently sits in the oversold zone at 29 with a declining slope, indicating rising selling pressure. The MACD also reinforces this view, with its histogram turning red and rising, suggesting a potential intensification of selling. Should the pair close and stay below 1.4785, it would further indicate increased selling pressure and a potential downward trend.
However, the RSI reaching oversold levels hints at the possibility of a corrective bounce above 1.4800.
EUR/CAD daily chart
Forex News
Keep up with the financial markets, know what's happening and what is affecting the markets with our latest market updates. Analyze market movers, trends and build your trading strategies accordingly.
