EUR/CAD 4H Chart: Reaches five-month low

The common European currency movement against the Canadian Dollar has been guided by two months descending channel. The currency pair reversed from the upper boundary of a senior channel on March 20 and has since reached a five-month low level at 1.55.
During the past few weeks, the 55– hour simple moving average has been directing the price movement down. Meanwhile, the EUR/CAD currency pair has reached the lower boundary of a dominant descending pattern and could be set for a breakout within this session.
If and when the aforementioned breakout occurs, the currency exchange rate could start a second-round of decline during the following weeks.
 

Comentário:

Previously it was noted that the EUR/CAD currency pair reached the lower trend line of a dominant descending pattern. The rate attempted to pass the support of the pattern three times, as observed on the four hour chart.

However, most recently the pair managed to break above a resistance line, which was pressuring the previously mentioned attempts to break out of the dominant pattern. Due to that reason it is assumed that the rate is set to reveal a new medium scale pattern in the near future.

Although, in the short term the pair is set to face the downwards pressure put up by the 55-period SMA, which was heading lower on Friday.