The EURCAD Broke the Crucial Support and Returned to its Main Bearish Trend

The proper EURCAD downtrend started in March of 2020. Today, the pair is taking another important step, which refreshes the bearish sentiment. For the past two years, the EURCAD is moving in very technical sequences. We’ve seen some proper drops and flat corrections. The most recent correction started in April and it looks like it came to an end just today.

EURCAD H4 10:10 GMT

The correction that we’re talking about was a big rectangle pattern restricted by the 1.376 resistance (red) supported at 1.34 (green). Both levels were tested frequently resulting in pullbacks to the inside but not today.

Today, traders chose a side and decided to go south. The euro is currently weakening across the globe and the EURCAD pair is in the same boat, If the price breaks the 1.34 support and drops lower. Currently the drop is the first step towards a proper sell signal. To secure a bearish victory we need to see if the daily candle will close below the green area. As for now, it looks optimistic and chances for a further slide are significant.