EUR/CAD Price Analysis: Bears looking to pounce on a downside daily continuation
|- EUR/CAD is compelling from a multi time-frame analysis and trades with a bearish bias.
- The 4-hour chart's support structure will need to be broken.
The market has corrected a daily bearish trend and would be now expected to collect offers at a discount for the bears which will open the case for a downside continuation.
The following is a top-down analysis that illustrates where the next swing trading opportunity could arise from current resistance.
Monthly chart
The price broke the old support structure which would now be expected to act as resistance following a rally from the 50 moving average.
The market is also trading below a bearish alignment of the 10 and 20 month moving averages.
Daily chart
The price is testing the 10-day moving average in a significant retracement. The market would be expected to find resistance and melt to the downside in a bearish continuation.
4-hour chart
However, there is still 4-hour structure that the price needs to conquer to the downside.
A break of support will be expected to see a restest of the structure from where bears would seek to engage and ride the continuation of the longer-term bearish trend.
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