EUR/CAD – ‘Bear party’ ahead, could test 1.34

Daily chart

EURCAD D1 (02-13-2017 2320).png

Chart source: FXCM Marketscope

  • Bearish break from the inverted flag & pole (bearish continuation pattern) is pretty much a done deal.
  • That would open up downside towards 1.3550 (measured height target).
  • Take note of the bearish daily RSI and and bearish crossover on the DMI.
  • The bearish trend seems to be gathering pace… the ADX has bottomed out and is not sloping upwards.

Monthly chart

EURCAD M1 (02-13-2017 2325).png

Chart source: FXCM Marketscope

  • Falling tops formation on the monthly chart is another warning of an upcoming fall.
  • The rising trend line support is seen around 1.3630.

Conclusion

  • Shorts could be initiated at the current levels as the cross is seen falling to 1.3630-1.3550 and possibly to 1.35 (May 2015 low) over the next few weeks.
  • Stops could be placed as per individual risk appetite.
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