EURCAD - Attempts to break long term channel support
EURCAD - Looks like price attempting to break out of long term ascending channel.
1) Price breaks to the downside of consolidation structure.
2) Price retests the consolidation structure and is rejected,
3) Price tests channel support, but can't manage a close below support.
4) Second attempt to break channel support is successful. Bears manage to close a couple dailyy candle below support, but yesterday bulls managed to close back above support. (False breakout)
Taking a step back and looking at the price action we see lower highs squeezing price towards support. EUR bulls haven't been able to push price high enough to test channel resistance for some time, suggesting bullish momentum is starting to weaken. Interestingly, EUR has held the majority of it's gains against many currencies, even as it has been beaten down by USD.
Just watching price for now... If we keep seeing lower highs and continued attacks of channel support, looking to trade a successful breakout to the downside. I'll update the idea as it plays out.
1) Price breaks to the downside of consolidation structure.
2) Price retests the consolidation structure and is rejected,
3) Price tests channel support, but can't manage a close below support.
4) Second attempt to break channel support is successful. Bears manage to close a couple dailyy candle below support, but yesterday bulls managed to close back above support. (False breakout)
Taking a step back and looking at the price action we see lower highs squeezing price towards support. EUR bulls haven't been able to push price high enough to test channel resistance for some time, suggesting bullish momentum is starting to weaken. Interestingly, EUR has held the majority of it's gains against many currencies, even as it has been beaten down by USD.
Just watching price for now... If we keep seeing lower highs and continued attacks of channel support, looking to trade a successful breakout to the downside. I'll update the idea as it plays out.
Comment:
View of the larger channel I'm referring to....
