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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