The euro currency is starting to appear more bearish against the Candian dollar this week, as the pair continues its recent reversal after peaking just below the 1.6000 resistance level last month.
EUR / CAD analysis shows that a large bearish head and shoulders pattern has been activated across the lower time frames.
EUR / CAD medium-term price trend
The euro currency has been reversing against the Canadian dollar this week, as the Candian dollar is boosted by a rise in oil prices.
EUR / CAD technical analysis over the medium-term shows that the pair could be getting ready for a major technical retest of a large falling wedge pattern.
The daily frame shows that sellers may be aiming for the 1.4800 level, which is the top of the mentioned falling wedge pattern.
Bulls inability to reach the multi-year trading high, around the 1.6150 level, means that the recent rally failed to create a valid bullish pattern.
This could be a trend defining moment for the EUR / CAD pair if the outlined scenario occurs.
EUR / CAD short-term price trend
EUR / CAD technical analysis shows that the pair has a bearish short-term trading bias while price trades below the 1.4280 level.
The short-term technicals are showing that a large head and shoulders pattern formed with a 700 point downside projection has formed.
The neckline if the pattern is found around the 1.5300 level and is warning of a coming decline towards the 1.4700 level.
It is also noteworthy that the bearish pattern has been activated and could mean the euro currency may remain weak against the Canadian dollar over the short-term.
EUR / CAD technical summary
EUR / CAD price analysis shows that a bearish head and shoulders pattern has been activated. Sellers may launch a technical test of an important technical breakout from last month.
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