EUR/CAD Price Analysis: Hovers around 1.4425 failing to break resistance at 1.4460

• EUR/CAD begins the Asian session up, 0.03% amid CAD weakness across the board.
• EUR/CAD Technical outlook: The pair is trapped within the 1.4292-1.4441 range, but it is closing to the top of the range.
• EUR/CAD: It has a downward bias in the mid-term, but support around the 1.4290’s could cap any downward move.

The EUR/CAD pair begins the Asian Pacific session on the right foot, advances 0.03%, trading at 1.4425 at the time of writing. On Tuesday, the market mood was in risk-off mode as portrayed by major US equity indices finishing in the red, losing between 0.31% and 0.71%. Also, in the FX market, risk-averse conditions boosted safe-haven currencies, like the Japanese yen and the Swiss franc.

On Tuesday, the Canadian dollar benefitted throughout the Asian and the European session, as witnessed by the EUR/CAD sliding towards 1.4391. But, once American traders got to their desks, the shared currency edged higher, propelled by gains in the EUR/USD pair. Contrarily, the Loonie depreciated against the greenback, which ultimately weighed on the EUR/CAD pair.

EUR/CAD Price Forecast: Technical outlook

The daily chart depicts that the pair as of yesterday is trapped on the October 27 price action within the  1.4292-1.4441 range. The daily moving averages (DMA’s) above the spot price indicate the pair has a downward bias. Furthermore, the Relative Strength Index (RSI), at 46, confirms the mid-term bias, so EUR/CAD sellers could be found around the 1.4400 area, as It was tested three times before.

Nevertheless, the EUR/CAD pair has been trading near the top of the October 27 high in the last four days, so the near-term trend appears to be tilted to the upside. In the outcome of an upward break, above the latter, the first resistance level would be the May 12 low at 1.4581. A breach of that level could expose the 50-DMA at 1.4617.

On the flip side, to resume the downward bias, EUR/CAD sellers would need to reclaim the 1.4300 figure. In that outcome, the following demand zone would be February 16, 2020, low at  1.4263.