EUR/CAD 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
After the resistance at 1.56 stopped appreciation of the Euro that started back in August of 2012, the currency pair entered a down-trend, which later on turned into a bearish channel. Just as a majority of the technical indicators, the pattern implies extension of a sell-off, and the fact that the price is currently fluctuating near the upper boundary of the corridor only increases the chance of a dip. This near-term decline is likely to result in a breach of the nearest supports, such as the weekly S1 and Jul 4 low at 1.4457 and the weekly S2 and Jan 6 low at 1.4383, and an eventual test of the lower trend-line of the channel, possibly at 1.4285, where it merges with the weekly S3.
© Dukascopy Bank SA
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