By: Colin Jessup
The EUR/CAD has been falling for 8 weeks in a row and this week makes it 9. Looking at a daily chart, we see only 5 candles in those 9 weeks that this pair closed higher than it opened, and of those 4 were either indecision, or consolidation patterns closing only slightly higher than open. We have broken below the September 2010 low of 1.3110 and appear to be heading for a test of the January 2011 low of 1.2774
Zones that usually provide support, and at least slow down the bears progression, are little more than speed bumps. After breaking the September low of 1.3394, we paused slightly at 1.3275, but the support zone of 1.3110 didn't even register with the bears as price was in free fall through this zone, bringing us to where we are now 1.3025.
There is little to slow this pair down until we reach the next key support level at 1.2840 (or the previously mentioned low 1.2774). That said, lok for price to possibly find support, if only temporary at 1.2960 or should things actually turn bullish, we will see resistance at 1.3275 & 1.3390 above that.
I remain strongly bearish on this pair.
