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Today EUR/CAD experienced a significant bearish reaction, which managed to cross the weekly R1 at 1.2476 and the weekly PP at 1.2416. As for now the currency couple is gradually approaching the 55-day SMA at 1.2363, which is expected to bring some bullish impetus. If it fails to stop the prevailing downtrend, then next support at 1.2281 (weekly S2) is very likely to stop the current decline. Nevertheless, RSI indicator shows neutral signal, and present resistances are at 1.2476, 1.2552 and 1.2611, and so far there are no signs for them to be breached.
Traders' sentiment
Despite the significant bearish movement, which occurred today, traders at SWFX market maintain optimism regarding the EUR/CAD currency couple, as 74% of traders hold bullish positions and only 26% of traders hold bearish positions. The distribution of orders, however, is rather neutral, since 45% of traders ordered to buy and 55% ordered to sell the single European currency.