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EUR/CAD Continuing the Bearish Trend

Earlier in the week, we saw the EUR/CAD break out of a consolidation pattern.
EUR/CAD in a Bearish Continuation Breakout

Since the breakout, this pair has fallen into fresh lows on the year:

EUR/CAD Daily Chart 4/10

(click to enlarge)

The daily chart shows a persistent bearish trend that was choppy at the end of last year into February this year. In March, with the ECB implementing QE, EUR/CAD fell to 1.3395 before consolidating again. Then, it treated the previous support pivot around 1.3755 as resistance. This week, it is continuing the bearish trend.

EUR/CAD Weekly Chart 4/10

(click to enlarge)

The weekly chart shows that EUR/CAD has been bearish since early 2014. AT the end of the year, price has crossed the 100-, and 50-week SMAs. After the multi-month consolidation, these moving averages became resistance. This is call a "bearish slingshot". EUR/CAD then broke the 200-weekly SMA and once again treated it as resistance - another bearish slingshot signal. 

Another strong sign of bearish continuation other than the fact that price is making a new low on the year is the dramatic fashion it is doing so this week. The weekly candle is about to close out the week as an engulfing candle. This market looks like it is poised to fall back towards the 1.2128 low from 2012, but in this short-term we should probably look for a target/support around 1.30. This is a psychological level and in a support/resistance area.

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