EUR/CAD Rally Fails to Trigger RSI Overbought Reading

The recent rally in EUR/CAD failed to push the Relative Strength Index (RSI) into overbought territory like the price action from earlier this year, with the exchange rate carving a series of lower highs and lows amid the lack of momentum to push above 1.4890 (38.2% Fibonacci extension).

EUR/CAD Rate Outlook

EUR/CAD weakens for the fourth consecutive day after registering a fresh monthly high (1.4882) earlier this week, with a break/close below the 1.4590 (23.6% Fibonacci retracement) to 1.4640 (23.6% Fibonacci extension) region bringing the 50-Day SMA (1.4523) on the radar.

EUR/CAD may track the July range amid the flattening slope in the moving average, but failure to defend the monthly low (1.4382) may push the exchange rate towards 1.4360 (38.2% Fibonacci extension), with the next area of interest coming in around the June low (1.4283).

Need a move back above 1.4770 (50% Fibonacci extension) for EUR/CAD to snap the bearish price series, with a move above the monthly high (1.4882) bringing 1.4890 (38.2% Fibonacci extension) back on the radar.