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 – Assessing the Imminent Range Breakout