EUR/CAD rally vulnerable to RSI divergence
EUR/CAD bounced back ahead of the 50-Day SMA (1.4632) to clear the March high (1.4939), but the exchange rate may give back the five-day rally as the Relative Strength Index (RSI) appears to be reversing ahead of overbought territory.
EUR/CAD Rate Outlook
EUR/CAD appears to be tracking the positive slope in the 50-Day SMA (1.4632) as it registers a fresh monthly high (1.4991), with the recent series of higher highs and lows raising the scope for a move towards 1.5090 (50% Fibonacci extension).
A move above the September 2021 high (1.5098) opens up the 1.5180 (61.8% Fibonacci extension) to 1.5200 (23.6% Fibonacci retracement) region, but the RSI seems to be diverging with price as it struggles to push above 70.
Lack of momentum to hold above 1.4890 (38.2% Fibonacci extension) may push EUR/CAD towards 1.4770 (50% Fibonacci extension), with the next area of interest coming in around 1.4600 (38.2% Fibonacci retracement) to 1.4640 (23.6% Fibonacci extension), which lines up with the 50-Day SMA (1.4632).
Additional Resources:
USD/CAD rallies ahead of US GDP report with March high on horizon
--- Written by David Song, Strategist
DavidJSong
EUR/CAD Rate Outlook
EUR/CAD appears to be tracking the positive slope in the 50-Day SMA (1.4632) as it registers a fresh monthly high (1.4991), with the recent series of higher highs and lows raising the scope for a move towards 1.5090 (50% Fibonacci extension).
A move above the September 2021 high (1.5098) opens up the 1.5180 (61.8% Fibonacci extension) to 1.5200 (23.6% Fibonacci retracement) region, but the RSI seems to be diverging with price as it struggles to push above 70.
Lack of momentum to hold above 1.4890 (38.2% Fibonacci extension) may push EUR/CAD towards 1.4770 (50% Fibonacci extension), with the next area of interest coming in around 1.4600 (38.2% Fibonacci retracement) to 1.4640 (23.6% Fibonacci extension), which lines up with the 50-Day SMA (1.4632).
Additional Resources:
USD/CAD rallies ahead of US GDP report with March high on horizon
--- Written by David Song, Strategist
DavidJSong
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