EUR/CAD has been consolidating since making a low on the year around 1.3380 in the middle of March. After a rebound from 1.3381, the pair rallied to about 1.3750, which became resistance over and over again throughout the rest of March and into April.
Here are some observations from the 4H chart.
1) Price is falling below a rising triangle pattern, signaling bearish continuation.
2) EUR/CAD held below its 200-period simple moving average (SMA), which represents maintenance of the medium-term bearish bias. Also, price has slid back under the 100-, and 50-period SMAs reviving short-term bearish bias as well.
3)The RSI has fallen below 40, which shows loss of bullish momentum. It is now tagging below 30, showing initiation of the bearish momentum.
The technical picture in 4H chart suggests EUR/CAD is going to test the 1.3380 support area soon with risk of extending lower.
The bearish picture in the 4H chart is aligned with the bearish mode seen in the daily chart below.
Here are some observations from the daily chart:
1) The moving averages are in bearish alignment and price continues to hold under them.
2) The consolidation found resistance at the previous support pivot around 1.3750-1.3760, which shows that bears are in control of the market.
3) The RSI has held below 60 after tagging below 30 in March. This reflects maintenance of the prevailing bearish momentum.
The technical picture in the daily chart also suggests bearish continuation. Even if price pops up above 1.3760, EUR/CAD would be in a bearish mode in the medium-term, allowing for some bullish correction in the short-term. In this scenario, we should look for resistance around 1.40
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