EUR/CAD 4H Chart: Double Bottom

There are a few signs the sell-off that was started in mid-March from 1.56 may be  already overstretched. Following an unsuccessful attempt of the currency pair to push through this year's low near 1.44, EUR/CAD broke the four-month down-trend to the upside, and there is a high possibility of a double bottom pattern emerging on the chart. A close above the neck-line at 1.4650 will confirm Euro's bullish intentions. In this case a conservative target will be the Jun 6 high at 1.495, followed by the Apr 28 high at 1.53 and March high at 1.56. At the same time the sentiment of the SWFX market is distinctly in favour of a rally—71% of traders are long and only 29% are short.