EUR/CAD Testing a Descending Triangle Support

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EUR/CAD Testing a Descending Triangle Support

The EUR/CAD has been consolidating in February in a descending triangle. Let’s take a look at the charts to prepare for a breakout as price action during the 2/20 is threatening the triangle support.

EUR/CAD was bullish in late January, but only briefly before stalling into a descending triangle. As we wrap up the week, it is threatening to break below the triangle support, which would likely revive a prevailing downtrend.

The daily chart shows the prevailing downtrend getting choppier since September. We can say that there has been an expanded range consolidation. However, the latest failure in February to push above 1.45 showed that there is no longer expansion, and that EUR/CAd might be ready to continue its prevailing downtrend.

Thus, the breakdown of the triangle will signal bearish outlook first to the 1.39 pivot, then the 1.3753 low on the year, with risk of extending lower.

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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.