EUR/CAD Breaks Below Crucial Support
Axiory | Jul 05, 2022 05:15AM ET
The proper EURCAD downtrend started in March 2020. Today, the pair is taking another critical step, which refreshes the bearish sentiment. The EUR/CAD has been moving in very technical sequences for the past two years. We’ve seen some proper drops and flat corrections. The most recent correction started in April, and it looks like it ended just today.
The correction we’re talking about was a big rectangle pattern restricted by the 1.376 resistance (red) supported at 1.34 (green). Both levels were tested frequently, resulting in pullbacks to the inside but not today.
Today, traders chose a side and decided to go south. The euro is currently weakening globally, and the EUR/CAD pair is in the same boat if it breaks the 1.34 support and drops lower. Currently, the drop is the first step towards a proper sell signal. We need to see if the daily candle will close below the green area to secure a bearish victory. As for now, it looks optimistic, and the chances for a further slide are significant.
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