EUR/CAD has broken out of the rectangular price pattern it has been forming since August.EUR/CAD Daily Chart (Click on image to enlarge)A bearish close on Monday (today) would confirm a decisive breakout from the pattern. The usual method for determining the follow-through after a breakout would be to take the height of the range and extrapolate it lower by 61.8% – or in the case of an optimistic forecast 100%. In the case of EUR/CAD this gives a minimum downside target of 1.4684. A break clearly below the green 200-day Simple Moving Average (SMA) would provide confirmation. The SMA lies at 1.4839, however, a break below 1.4820 would confirm a clear break and probably confirm a continuation lower to the aforementioned conservative target. The 100% target for the pattern lies at 1.4555.More By This Author:EUR/GBP Price Prediction: Resumes Bear Trend After Breaking Decisively Below Range Floor NZD/JPY Price Analysis: Bearish Momentum Intensifies, Threatening 91.00 US Dollar Adds Ground To Close A Strong Week
EUR/CAD Price Forecast: Breaks Out Of Rectangular Price Pattern And Declines
