EUR/CAD daily chart shows a bearish continuation pattern

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• The cross witnessed a downside break from the bearish flag pattern. One may also call it as a bearish break from the sideways channel.
• Both mean the same thing, i.e. the sell-off from November 9 high of 1.52815 has resumed.
• As per the measured height method, the doors are open for a drop to 1.3550.
• The bearish RSI (below 50.00 and sloping downwards) and the bearish crossover on the DMI add credence to the bearish action on the price chart.

Monthly chart shows strong support around 1.3650 levels

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• The rising trend line is likely to offer strong support at around 1.3650 levels.
• The falling tops formation only adds credence to the bearish daily chart.

The stage is set for a drop to 1.3650-1.3550 and possibly to 1.34 (May 2015 low). Bearish invalidation is seen only if the cross sees at least two consecutive daily close above 1.40 levels.

EUR/USD - Potential Inverse Head & Shoulder on the daily chart

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• It may be too early to call it an inverse head and shoulder, however, what we are trying to say here is that one needs to be cautious once the pair is around 1.05 levels.
• A rebound from 1.05 followed by a break above 1.0620 would open doors for the completion of the right shoulder… i.e. rally towards neckline level of 1.0836.