EURCAD: Breakout & Technical Outlook
From the beginning of August EURCAD is trading in a strong bearish trend .
Reaching 1.43 level the price started to consolidate.
For almost 1 month the pair was trading within a narrow horizontal trading range on a daily.
Accumulating, bears finally broke its support this week.
Of course, the outlook is very bearish and a further decline is expected.
In order to catch it safely, I would recommend looking for an occasional pullback.
Here are the important points for you to watch:
1.4294 is the level of the previous lower low.
1.4294 - 1.4325 is the closest resistance to look for shorting.
However, even in case of its bullish violation, technically speaking the pair will remain bearish
while it is trading below 1.4464 level (the level of the last lower high).
1.4294 - 1.4464 is the so-called bears zone and bearish rally may initiate from any level within that zone.
Be careful and trade the pair accordingly.
Next support - 1.41