EUR/CAD fails to test April high

4 พ.ค. 2023

EUR/CAD seems to have staged a failed attempt to test the April high (1.5113) as it snaps the series of higher highs and lows from the start of the week.

EUR/CAD Rate Outlook

EUR/CAD gives back the advance from the monthly low (1.4841) following the European Central Bank (ECB) interest rate decision, while the Relative Strength Index (RSI) diverges with price as it turns well ahead of 70 to reflect a lower high in May.

The RSI may continue to move away from overbought territory if EUR/CAD struggles to hold above 1.4890 (38.2% Fibonacci extension), with a move below the monthly low (1.4841) raising the scope for a move towards 1.4770 (50% Fibonacci extension).

However, EUR/CAD may trade within a defined range if it defends the opening range for May, and lack of momentum to push below 1.4890 (38.2% Fibonacci extension) may lead to further attempts to test the April high (1.5113) even as the RSI diverges with price.

Additional Resources:

USD/CAD reverses ahead of April high with monthly open in focus

--- Written by David Song, Strategist

DavidJSong