EUR/CAD Price Forecast: Sees more downside below 1.4800

• EUR/CAD weakens as the EURO faces selling pressure across the board.
• Trump's victory and German political uncertainty have weighed on the Euro.
• The BoC is expected to cut interest rates by 50 bps next month.

The EUR/CAD pair trades close to more than a three-month low around 1.4820 in European trading hours on Tuesday. The cross extends its losing streak for the third trading day on Tuesday as the Euro (EUR) remains on the backfoot across the board.

The Euro faces intense selling pressure on Republican Donald Trump's victory in United States (US) presidential elections who vowed to raise import tariffs by 10% universally in his election campaign. Though the impact should be seen on all trading partners of the US, the Euro appears to be a bigger victim, with Trump mentioning in his election campaign the euro bloc will "pay a big price" for not buying enough American exports.

Meanwhile, German political uncertainty after the collapse of the three-party coalition has also weighed on the Euro, challenging the economic growth by paving the way for a confidence vote on December 18 and a snap election on February 23, according to a report from Focus Online.

Though investors have underpinned the Canadian Dollar (CAD) against the US Dollar (USD), its outlook remains weak on growing expectations that the Bank of Canada (BoC) will cut interest rates further. The BoC is expected to reduce its key borrowing rates by 50 basis points (bps) again in the December meeting.

EUR/CAD delivers a breakdown of the Distribution formation on a daily timeframe in which the asset is transferred from institutional investors to retail participants, which results in a bearish reversal. The longer-term trend of the asset has also turned bearish as it has slipped below the 200-day Exponential Moving Average (EMA), which trades around 1.4866.

The 14-day Relative Strength Index (RSI) slides below 40.00, adds to evidence of more downside ahead.

The cross could decline to the July 10 low near 1.4730 and the round-level support of 1.4700 after breaking below the July 12 low near 1.4800.

On the flip side, a recovery move above the November 11 high of 1.4927 will drive the asset towards the psychological resistance of 1.5000 and the October 28 high of 1.5045.

EUR/CAD daily chart