The EUR/CAD chart technical outlook provides an analysis of the price action and indicators for the currency pair consisting of the euro (EUR) and the Canadian dollar (CAD). Here is a description of the current technical outlook for the EUR/CAD chart:
The EUR/CAD chart is displaying a sideways or range-bound movement in recent trading sessions. The pair has been moving within a relatively narrow price range, with support and resistance levels containing the price action. This suggests a lack of strong directional momentum and a balanced market sentiment between the euro and the Canadian dollar.
Looking at key technical indicators, the moving averages are relatively flat, indicating a lack of clear trend direction. The 50-day moving average and the 200-day moving average are close together, suggesting a consolidation phase for the currency pair.
In terms of support and resistance levels, traders will closely monitor key levels to identify potential breakout opportunities. If the price breaks above the resistance level, it may indicate a bullish bias, while a break below the support level could signal a bearish sentiment.
The relative strength index (RSI) is hovering around the midpoint, indicating a neutral stance. This further confirms the lack of a clear trend in the EUR/CAD pair at the moment.
EURCAD Chart Technical Outlook has room to rise due to three main factors:
1) The European Central Bank remains hawkish and undeterred by signs of weakness coming from PMIs. With a strong labor market and interest rates which are still lagging behind the US and the UK, the ECB is unlikely to stop
2) The Bank of Canada has paused its rate hikes and is unlikely to raise them after soft Canadian inflation data. While Friday’s jobs report could go either way – these tend to be wild – the BOC seems done.
3) Pressure on oil prices: the United Arab Emirates refused to join Saudi Arabia and Russia with oil output cuts. This is today’s theme, but the bigger picture is oversupply and not enough demand from the US and China. Beijing is unwilling or unable to further boost its economy and the dividends from the post-covid reopening are over. Oil is Canada’s main export.
So, while the EUR/CAD chart looks sideways and choppy, fundamentals point up.