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EUR/CAD in a Bearish Continuation Breakout

EUR/CAD looks like it is poised to continue its prevailing downtrend:

EUR/CAD 4H Chart 4/8



The 4H chart shows a market that was consolidating after making a low on the year at 1.3381. There was a bullish correction to about 1.3745-50 before EUR/CAD stalled. The pair then started to consolidate sideways, or in an ascending triangle. This week, price fell below the triangle structure, signaling bearish continuation. The RSI has tagged 30, which reflects revival of the bearish momentum. Price is also back under the 100-, and 50-period SMAs, also reflecting a revival of the bearish bias.

EUR/CAD now looks poised to test the 1.3381 low based on the bearish technical picture in the 4H chart. The daily chart also suggests the pair is likely to push below 1.3381

EUR/CAD Daily Chart 4/8

The daily chart shows that the resistance of the current consolidation was the support pivot from a previous multi-month consolidation. This shows that bears are in charge of the market. Even if price pops up above 1.3753, the daily chart would be bearish. If price does reach above 1.3753, the next key resistance will be around 1.40.