EUR/CAD Is Moving to the Downside

EUR/CAD had reached a strong resistance at 1.5260 and started consolidating for weeks although it did not quite reach the last high visible on the monthly time-frame at 1.5280. Finally the pair formed a very telling hanging man candlestick on the daily time-frame below the aforementioned resistance at 1.5260 and started steadily moving to the downside. Currently the pair is testing the support at the last low at 1.4824 and a breakout below that level will likely lead to a further move to the downside towards the next obvious level of support, which is at 1.4680 and coincides with the (MA)89 indicator on the same daily time-frame. A breakout below that level in turn will probably mean a further drop towards 1.4550.