EUR/CAD extends losses towards seven-year lows

Euro's daily slide against other majors accelerated during European trading hours. In the absence of high-tier data releases, the Canadian dollar continues to strengthen while investors eye geopolitical headlines.

Euro/Dollar is currently in a downtrend below both the 50-day and the 200-day exponential moving averages. The high of March 31 at 1.39782 will be established as the new lower top if sellers can close today's candlestick in red, lower than the low of Friday. In that case, bears will likely plan to attack levels around 1.36714, which is around 7-year lows.

In the event of a decisive break below this threshold, we may be able to move toward the next resistance level at 1.35880, which is the target of the 127.2% extension of the previous upswing. Accordingly, the price can fall to the Fibonacci 161.8% level at 1.34818 if selling interest remains high.

However, should the sellers take a breather, the bulls may also have a chance to try and drive the price higher towards the immediate resistance at the 1.39782 barrier. Getting over this hurdle may trigger an upward trend driven by buyers aiming for the 50-day EMA. Further traction may push the 1.42274 barrier into buyers' sight.

Short-term momentum oscillators paint a mixed picture. The RSI is pointing downward in the selling zone, and momentum is moving back towards 100 from its deep extreme. Additionally, negative MACD bars are moving flat above the signal line.