EUR/CAD 4H Chart: Double Bottom

How EUR/CAD reacts to a test of 1.4563 is likely to define its behaviour in the next few days, potentially even weeks, since this level is the neck-line of a double bottom pattern. In case the resistance is broken to the upside, we can expect a bullish run through the weekly pivots and up to the Jun 6 high at 1.4957.

Conversely, should this line remain intact, the ensuing decline will most likely extend through the support at 1.4557 (weekly S1 and 200-period SMA) and down to 1.44, where the Jul 23 merges with the weekly S3. And while the four-hour studies are in favour of the former scenario, a majority of the weekly indicators is presently giving ‘sell' signals.