The pair failed on a break to multi year highs this week and fell below trend lines/MA

The EURCAD is showing signs of a bearish crack lower.

What does that look like?

Looking at the daily chart above, the price this week moved to the highest level since July 2009. The high price reached 1.61506. That high surpassed the March 7th high that reached 1.6121. That high broke the high going all the way back to January 2015 at 1.61059.

Well this week's break (and highest high since July 2009) failed. That is bearish.

Another negative/bearish look comes from the 4-hour chart. Looking at that chart, the fall this week has moved below trend lines and the 100 hour MA at 1.59499 level (blue line in the chart below). That gives the pair a little more bear as well.

Is it the end of the world?

The price has been trending higher since January. The price is still above the 200 bar MA on the 4-hour. It is above the 38.2% of the move higher at 1.5642.

However, we as traders look for the turns in the tide.

  • The failure of the breaks higher is showing a tired market
  • The move below trend lines and the 100 bar MA on the 4-hour is more bearish.

Can that momentum continue?

Can the price stay below the broken levels?

The momentum focuses on the targets. The broken levels are the risk. Staying below the broken levels keeps the bears happy. Hitting and breaking targets makes the bearish even happier.

The reverse of those realities are what the bulls/buyers hope for.

Right now, the sellers are felling a bit better.