EURCAD has lost considerable ground after touching a three-month high of 1.5585 in late June. Earlier on Friday, it hit a two-month low of 1.5061.
The Tenkan- and Kijun-sen lines are negatively aligned in support of a bearish bias in the short-term. The RSI, which has been declining in recent weeks, also points to negative momentum, though notice as well that the indicator is relatively close to the 30-ovesold level; a move below 30 may indicate an overextended selloff.
If the pair continues declining, support may be met around the 1.50 round figure, which could be of psychological importance. Steeper losses would bring into scope the region around the seven-month low of 1.4916 from late May, and then the area around January 9’s near nine-month low of 1.4817.
On the upside, resistance could come around the 23.6% Fibonacci retracement level of the March 20 to May 30 downleg at 1.5206. Not far above, the range from 1.5237 to 1.5306 encapsulates the Tenkan- and Kijun-sen lines, the current level of the 50-day moving average line, and the Ichimoku cloud bottom and top, and may thus be of significance, acting as an additional barrier to price gains.
In terms of the medium-term picture, it is looking mostly negative, with price action taking place below the 50- and 100-day MA lines, as well as below the Ichimoku cloud. Additionally, a bearish cross was recorded in late May when the 50-day MA moved below the 100-day one.
Overall, both the short- and medium-term outlooks are looking bearish at the moment. For perspective, the pair has shed 6.6% after posting a nine-year high of 1.6151 in late March.
