EUR/CAD 4H Chart: Channel Down

The common European currency is trading against the Canadian Dollar simultaneously in the medium-term ascending and short-term descending channels. The junior channel represents a rebound of the currency exchange rate from the upper trend line of the dominant channel. In the meanwhile, the recent movements of the pair indicate on transformation of the dominant channel into the rising wedge. Accordingly, the junior channel most likely is going to sustain until the rate reaches the support line of the wedge somewhere near the 1.5100-1.5300 mark. If this scenario comes true, then the pair most probably is going to resume the surge until the monthly R1 at 1.5321, where a breakout from the wedge is likely to happen.