EURCAD → A set of bearish patterns foreshadowing the decline

Dec 20, 2023

EURCAD is forming a standard bearish setup on the background of the forming downtrend, as the Canadian is getting stronger than the Euro and thus changing the market direction.



On D1 we can see that in general the currency pair is in a global range and it is impossible to identify any key trend, so it is acceptable to trade both buying and selling within the range. But since we have a set of sell signals forming, we should expect further price decline.
The level of 1.46400 (D1) plays an important role. Consolidation is formed, then the level is broken, after which a pin-bar is formed on the background of the retest, which confirms the interests of the market.
On H1, the price breaks the consolidation support, makes a false break of 1.464 as part of the correction and even on H1 a bearish candlestick pattern is formed with subsequent consolidation of the price below the level, which is an additional confirmation.

Support levels: 1.458, 1.456, 1.4478, 1.4350
Resistance levels: 1.464, 1.4747

I expect a continuation of the decline, a retest of 1.464 is possible, but in general the setup hints at the continuation of the downtrend.

Regards R. Linda!

Dec 20, 2023

Trade active

Consolidation below the previously broken level forms a bearish potential
price starts to fall