Sell EURCAD Channel Breakout

The EUR/CAD pair on the M30 timeframe presents a potential shorting opportunity due to a recent downward breakout from a well-defined bearish channel pattern. This breakout suggests a shift in momentum towards the downside and a higher likelihood of further declines in the coming hours.

Key Points:

Sell Entry: Consider entering a short position (selling) below the broken support level of the channel, ideally around 1.4660 after confirmation of the breakout. This offers an entry point close to the perceived shift in momentum.

Target Levels: Initial bearish targets lie at the previous support levels within the channel, now acting as potential resistance zones:
1.4616: This represents the first level of support within the channel.
1.4588: This is a further extension of the downside target, based on the height of the recent price movement before the breakout.

Stop-Loss: To manage risk, place a stop-loss order above the broken support line of the channel, ideally around 1.4682. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards.

Thank you.

Trade active:

Weak Eurozone Data: The Eurozone faces economic headwinds, with concerns about a potential recession. Weaker than expected data from the Eurozone could further weaken the Euro.

Comment:

Trade closed: target reached