On the EURCAD, from the first week of the current month, an upward trend has started creating a correction of declines from the peak 1.5585. At the end of last week, the resistance of this channel was tested, and the quotations reached its lower limit yesterday. As can be seen in the 4-hour chart below, this support was overcome and the rate was again on the levels from over a month ago. This breakthrough may signal the potential for further declines, where the closest important support is the confluence area, where the horizontal level of 1.5130 intersects with the trend line running from the low from November 2017.In the case of a pull back after breaking, the new resistance may be the broken channel support with the area within 1.5365. However, returning to the channel’s range will challenge the bearish short-term attitude.
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