EUR/CAD rebounds ahead of April low to snap bearish price series

EUR/CAD carved a series of lower highs and lows following the failed attempt to test the April high (1.5113), but the exchange rate appears to be bouncing back ahead of the April low (1.4580) as it snaps the bearish price action carried over from last week.

EUR/CAD Rate Outlook

EUR/CAD may mirror the price action from last month amid the failed attempt to break/close below the 1.4600 (38.2% Fibonacci retracement) to 1.4640 (23.6% Fibonacci extension) region as it extends the rebound from the monthly low (1.4632).

A move back above the 50-Day SMA (1.4745) along with a break/close above 1.4770 (50% Fibonacci extension) may push EUR/CAD towards 1.4890 (38.2% Fibonacci extension), with the next area of interest coming in around 1.5090 (50% Fibonacci extension).

It remains to be seen if EUR/CAD will track the positive slope in the moving average, but lack of momentum to break/close above 1.4770 (50% Fibonacci extension) may lead to another run at the April low (1.4580).

Additional Resources:

USD/CAD recovery materializes amid failure to test April low

EUR/USD outlook clouded by downward trend in RSI

--- Written by David Song, Strategist

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