Looking at the weekly timeframe, price has been consolidating in a descending channel. Dominant market players since last year have been the bears. Last week’s candlestick approached the upper boundary of the channel. Currently, there has been a strong rejection of higher prices, denoted by the close below.
Considering this current weeks’ candle close. There’s a high possibility we might see lower prices. However being in a descending channel ,we have to patiently wait for a break out to confirm any further price movement.
On the weekly timeframe of the Euro vs Canadian dollar, price has been consolidating for a very long time. The resulting price pattern, was a descending channel. Bears came in strongly for the past 2 weeks and have successfully pushed prices lower.
We wait for further price action to ascertain whether we are going to see sellers sustain such lower prices. There’s a possibility prices might pullback to test the lower boundary of the symmetrical triangle. Therefore we have to be vigilant and patient for price action to tell us what next.