Overview: – The euro zone single currency has surged by 1.22% against the Canadian dollar since October 14, the channel pattern holds the bearish movement in the market during the trading session. The bears are prevailing in the market. From the 4 hourly chart bears are doing their best for last couple of weeks and the pair is falling below the 200 SMA and continuing with the downtrend in the market. The chart is showing their strong bearish side of the market. Sellers are heading their potential and leading towards the south direction.
Technical Analysis: From the technical perspective we can see the short-term uptrend line has been breached out in the 4 hourly charts which are providing bearish signals to the market. Pair is trading below all the major and minor EMA and SMA lines. We suggest the sellers sit on the sell-side. On the daily chart, we can see that the previous market is forming the rounding bottom in the market and after that market is making lower swings. Odds are in favor of the bears and we will get further bearishness in the market.
The swings are making their successively lower lows and higher high in the market. The bears are, making the negative momentum at level 1.5391. The pair is making negative volatility in the market. The bears are leading in the game and playing at the front foot after breaking the important support level. EURCAD looks set to decline some more reach and reach lows around 1.5000.
The RSI is below the 50 levels which are favoring the bears. A bearish crossover on the MACD indicator is showing the weakness in the pair. The support of the level is 1.5389 followed by 1.5349 and the resistance is 1.5401 followed by 1.5440.
Trade Idea: From the above statement with can conclude that sell at 1.5440-50 target will be 1.5350 -1.5280 and loss will be 1.5540.
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