- EUR/CAD is likely to rise as the daily analysis shows a slight divergence.
- On the 14th, the RSI remained near the 50 level, indicating moderate strength.
- The pair tested the first resistance at 1.4895 near the 9-day EMA, parallel to the psychological level of 1.4900.
EUR/CAD fell for the second session and traded around 1.4880 in the Asian session on Tuesday. Analysis of the daily chart shows that the pair is still in an ascending channel, i.e. a slight trend.
However, the 14-day relative strength index (RSI), a key indicator of overbought or oversold conditions, remains below 50, indicating moderate strength. A break above this could signal a further uptrend.
If the RSI is above 50, traders could look for signs of bullish support, which could push EUR/CAD towards the 1.4950-1.5050 range, where the bulls could test the strength of the rally again.
On the upside, EUR/CAD encountered initial resistance near the 9-day exponential moving average (EMA) at 1.4895, followed by the 14-day exponential moving average (EMA) at 1.4903. A decision above the key resistance zone would support the trend and potentially push the pair to the December high of 1.5060.
The main support is near the lower end of the uptrend at 1.4800. A shortfall below this support could lead to further declines. However, if this level is decided to be broken, it will have a significant impact and open the door for EUR/CAD to approach the high of 1.4700.
EUR/CAD: Technical Analysis on the Daily Chart
