Euro / Canadian Dollar - Market ReportMonthly Market Analysis:
The ascending trendline, horizontal, and dynamic support breakout that developed in July 2019 indicates a continued decline it to be expected.
However, it’s important to mention that the macro structure remains bullish until a breach of the previous higher low at 1.400 is confirmed.
Weekly Market Analysis:
The descending trendline connecting the lower highs, and the previous horizontal support remains a crucial area of interest.
Additionally, the 200 and 50 exponential moving average is providing added dynamic protection.
The slow down in momentum approaching the 1.4900 structure resistance zone indicates this is a consolidation period before a continued decline as opposed to a false breakout.
Daily Market Analysis:
The impulse and deep consolidation period that’s developed throughout August confirms the visible indecision on the weekly time horizon.
At present, no visible structure or chart pattern is developing to help determine the direction with any degree of certainty.
Summary:
The monthly and weekly short term bearish momentum indicates additional downside is to be expected.
In regards to a possible trade opportunity, there are added layers of confluence that are required on the daily time horizon to determine the reward comparative to risk profile.
