EUR/CAD SCENARIO DECONSTRUCTION

2 Jun 2020

The pair is in downtrend and is now trading in a bear triangle, with the established strong resistance area in the red. So the upward movement is now possible only in the space within the triangle in the area below the structure.

It is therefore reasonable to expect a breakout of this triangle downwards at some point. The scenario holds if the 1D candle closes below the triangle lower support line.
It would imply a confirmed breakout which then will signal us with some degree of certainty that the downward movement is set to continue.

The first target is the first support level. The second one seems to be a more robust level and therefore is outlined as the next target of the downward movement.

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