EUR/CAD 1H Chart: Triangle

A precipitous 270-pip decline that took place last week was followed by a long consolidation phase. As a result, there is a symmetrical triangle emerging on the hourly chart of EUR/CAD. Accordingly, there is a good chance that the up-trend support line (currently at 1.5039) is going to eventually give in to the downward pressure and allow further extension of the sell-off started at the beginning of April.

However, there are few confirmations of this course of events in the future. Neither the technical indicators (with a few exceptions on the daily chart) nor the sentiment of the market  (only 56% of traders are holding short positions) are in favour of a dip.