EUR/CAD 4H Chart: Channel Down

The currency pair remains bearish since the second half of March and is likely to stay that way in the foreseeable future, given that it is trading between two parallel downward-sloping lines. However, if EUR/CAD rebounds from the Jan 6 low at 1.44 and pierces through the down-trend line at 1.4550, there will be a possibility of a double bottom pattern appearing on the chart, which in turn means a reversal of the trend. Then the Euro will have to break the resistance at 1.4650 in order to confirm its bullish intentions and attempt to reach the Jun 6 high at 1.4950. Still, the base scenario is a dip down to 1.43, where the lower edge of the channel merges with the weekly S3 level.