EUR/CAD – A Bearish Continuation Breakout

0
165
EUR/CAD - A Bearish Continuation Breakout

The EUR/CAD has been consolidating since September. It also entered a consolidation within this large mode of neutral price action in February. As we enter into a new month, we are seeing a bearish breakout in both the smaller and larger consolidation. Let’s take a look at the 4H and daily charts.

There is a bearish breakout from February’s range of 1.4070-1.4340. Now there is a pullback, and if price holds below 1.4150, we should maintain the bearish outlook. However, a break above would put pressure back towards the 1.4340 resistance.

Sticking with the bearish outlook, we can see that the breakout is also in the daily chart, where we saw an expanded range since September. Before that the market was bearish. The expansion stopped in February when price failed to reach December’s highs around 1.46. Then, the bearish breakout last week also broke a rising speedline from January.

Thus the breakout of both the February range, and the consolidation pattern since September, exposes the 1.3750-1.38 lows, with risk of extending even lower.

Previous Post by Author: USD/CAD РAssessing the Imminent Range Breakout

SHARE
Previous articleUSD/CAD – Assessing an Imminent Range Breakout
Next articleAUD/USD – Bearish Outside Bar at a Falling Trendline
Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.