EUR/CAD – ‘Bear party’ ahead, could test 1.34

Daily chart

Chart source: FXCM Marketscope

• Bearish break from the inverted flag & pole (bearish continuation pattern) is pretty much a done deal.
• That would open up downside towards 1.3550 (measured height target).
• Take note of the bearish daily RSI and and bearish crossover on the DMI.
• The bearish trend seems to be gathering pace… the ADX has bottomed out and is not sloping upwards.

Monthly chart

Chart source: FXCM Marketscope

• Falling tops formation on the monthly chart is another warning of an upcoming fall.
• The rising trend line support is seen around 1.3630.

Conclusion

• Shorts could be initiated at the current levels as the cross is seen falling to 1.3630-1.3550 and possibly to 1.35 (May 2015 low) over the next few weeks.
• Stops could be placed as per individual risk appetite.