Following broad-based selloff in Euro, EUR/CAD finally broke out of range this week and it’s now resuming long term down trend. Outlook is clearly bearish with the cross staying well inside falling channel, with recovered capped by falling 55 day EMA.
Next near term target is 61.8% projection of 1.3713 to 1.2970 from 1.3271 at 1.2812. The main question is whether EUR/CAD would accelerate downward further after hitting 1.2812. In that case, the cross could reach 100% projection at 1.2528 and rather quick manner.
There is no clear support level ahead until 2012 low at 1.2127. In any case, for now, outlook will stay bearish as long as 1.3271 resistance holds.
