EURCAD produced another bearish candle closing below the last swing low yesterday. Thus, the sellers may wait to go short in the pair and drive the price towards the downside. Intraday charts show that the pair is trading below yesterday’s lowest low. It means intraday sellers are going to wait for a bearish reversal candle to trigger short entries. Let us have a look at three vital charts.
Chart 1 EUR/CAD Daily Chart
The chart shows that the price made a bullish move and had a rejection at the level of 1.59200. It produced a bearish inside bar and continued its bearish move for two more candles. It then had a bullish correction. Upon finding its resistance around 1.58000, it produced a spinning top followed by yesterday’s bearish candle. Thus, the sellers may go short in the pair if the price breaches yesterday’s lowest low. The price may find its next support around 1.54500.
Chart 1 EUR/CAD H4 Chart
The chart shows that the price made a breakout at the level of 1.57000 and traded below the level for several candles. The sellers may wait for the price to make a bullish correction/consolidation. The level of 1.57000 may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may go short below today’s lowest low. The price may find its next support around 1.55600. On the contrary, if the price breaches the level, it may head towards the North to search for its resistance. The level of 1.57200 may work as a level of resistance here.
Chart 1 EUR/CAD H1 Chart
The chart shows that the price has been heading towards the downside with good bearish momentum. It had a bounce at the level of 1.56660 and produced a morning star. However, it has found its resistance and made a bearish move upon producing a bearish Marubozu candle. On its way, it made a breakout at the level of 1.56660. It may work as consolidation resistance and drive the price towards the South. On the other hand, if consolidation support produces a bullish reversal candle, the buyers may go long in the pair upon a breakout at the level of 1.56660 and push the price towards the North. The price may find its next resistance around the level of 1.57000.
The daily, the H4, and the H1 charts look bearish, and they may produce bearish momentum any time. Considering these three charts, it seems that the pair may end up producing another bearish candle in the daily chart.