The trend is your friend….EURCAD respects bearish channel

The EURCAD fulfills the prerequisites of a bearish trend on the daily charts as there have been consistently lower lows and lower highs. Prices are trading below the 200 Simple Moving Average while the MACD is the process of crossing to the downside. A solid breakdown and daily close below 1.4920 is seen opening a path towards 1.4850 which is 70 pips away. This bearish setup remains valid as long as prices are able to keep below the 1.5040 lower high. There is potential for a new lower high around 1.5000 to be created if a daily close below 1.4920 is achieved.