EUR/CAD Sell Off

EUR/CAD has been trading to the downside for the past three days as the pair is going through a heavy selling wave. The short term momentum implies that the exchange rate will continue to trade lower as market participants are aiming towards the support level on the medium term at 1.5000.

The pair has other indications of a bearish market, namely the main moving averages and the fact that EUR/CAD is trading below them. Last week the pair went below the 200SMA and now the three of them, 50, 100 and 200SMA are gravitating above the exchange rate.

If EUR/CAD can reach the support level we could expect strong bullish reaction in the initial time as an attempt to buy at the bottom and potentially reverse the trend. On the long term, however, the pair is still making good bullish steps.

Chart: EUR/CAD D1