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EUR/CAD - Head and Shoulders

After reaching a high of 1.5585 in March, EUR/CAD has retreated below 1.49 today (5/14).

(eurcad daily chart 5/14)

Head and Shoulders:
Looking at the daily chart you can argue that a head and shoulders pattern has formed. The shoulders are around 1.53-1.5310, but the neckline is not so clear. Still, you can see that a correction is developing.

Support, oversold oscillator readings:
In the short-term, we might have some support around 1.48 and the 200-day SMA especially as the oscillators in the daily chart show oversold condition. It should be noted that the ability of the RSI to dip below 30 is a signal that the trend might be shifting to bearish mode. 

If a subsequent pullback fizzles before challenging the 1.53 handle, preferably staying below the 1.50 psychological level, then we can say the market has topped and we can look for a bearish attempt toward the next support/resistance pivot area, 1.44-1.4445. Also in this pullback, look for the daily RSI to hold under 60, which adds weight to further bearish correction.