EURCAD was hit by a sharp selling wave last week, erasing the sparkle from early April to meet the crucial support zone of 1.4723.
Unless the pair manages to pivot at this point, the bears could gain extra steam likely towards the 1.4580 restrictive zone, while a deeper freefall may seek support around the 1.4455 number.
From a technical perspective, oversold signals are flashing red, but the bears could stay on board in the short term as the fast-Stochastics have yet to change course below the 20 level, while the RSI, although in breathing distance above 30, has yet to cross its oversold level. The MACD also favors additional downside corrections as the indicator continues to decelerate below its zero and signal lines.
If the bulls return to the game, the first target will be the 1.4900 round-level where the lower boundary of the Ichimoku cloud resides and the shorter-term simple moving averages converge. Crawling higher, the 23.6% Fibonacci of the 1.5977 – 1.4700 down leg could cap the rally around 1.5000, deterring any move above the cloud and towards the 38.2% Fibonacci key resistance of 1.5190.
Summarizing, EURCAD seems to be at a make-or-break point around 1.4723, while negative risks keep lingering in the background. A decisive close below that threshold could trigger a sharp decline towards 1.4580.
