EURCAD - Double top

EURCAD (1H) - short term bearish bias

The pair came under pressure as the euro ran up to the previous high of 1.4760. The daily double top formation is likely to keep the price muted after longs took profits off the table. A number of bearish signs have called for a reversal: a bearish RSI divergence showed a loss in the upward momentum, followed by successive breaks under the moving averages and the support level of 1.4720. We expect the euro to dip as far as to 1.4650 as a fresh round of selling kicks in.

Key support: 1.4650
Key resistance: 1.4730