EUR/CAD Price Forecast: Holds above nine-day EMA, 1.6200 within a consolidation phase

• EUR/CAD may approach the rectangle's upper boundary at 1.6460.
• The 14-day Relative Strength Index sits slightly below the 50 mark, indicating a mild bearish bias.
• The immediate support lies at the nine-day Exponential Moving Average of 1.6213.

EUR/CAD extends its gains for the second successive session, trading around 1.6220 during the early European hours on Thursday. The currency cross has moved above the nine-day Exponential Moving Average (EMA), suggesting that short-term price momentum has turned stronger.

Technical analysis on the daily chart indicates a range-bound trading, with the currency cross moving sideways within a rectangle. However, the 14-day Relative Strength Index (RSI) is positioned slightly below the 50 level, suggesting that a bearish bias is in play. Further advances above the 50 mark would suggest that bullish bias is gradually building within the consolidation range.

On the upside, the EUR/CAD cross may explore the region around the upper boundary of the rectangle at 1.6460, aligned with the all-time high of 1.6467, reached on October 17.

The EUR/CAD cross may test the immediate support at the nine-day Exponential Moving Average (EMA) of 1.6213, followed by the psychological level of 1.6200 and the rectangle's lower boundary near 1.6190. A break below this confluence support area would cause the emergence of the bearish bias and put downward pressure on the currency cross to navigate the region around the three-month low of 1.6013, which was recorded on September 2.