EUR/CAD plunged in the short term after failing to stabilize above a resistance zone. The bias is bearish, so we could search for short opportunities again. Technically, the price action has signaled that the rebound is over.
Despite the bearish outlook, we still need confirmation before deciding to sell EUR/CAD. We cannot exclude a potential bounce back after today’s sell-off.
EUR/CAD is traded at 1.4715 below the 1.4717 weekly pivot point. Its failure to come back to reach and retest the major downtrend line signaled strong selling pressure.
Also, the pair failed to stabilize above the weekly R1 (1.4792). Stabilizing under the weekly pivot point may signal a deeper decline. Escaping from the ascending pitchfork’s body signals that the EUR/CAD may turn to the downside.
Dropping under 1.4702 immediate low could activate a broader sell-off. It could drop towards the S1 (1.4618) if it stabilizes under the pivot point.
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