The common European currency movement against the Canadian Dollar has been guided by two months descending channel. The currency pair reversed from the upper boundary of a senior channel on March 20 and has since reached a five-month low level at 1.55.
During the past few weeks, the 55– hour simple moving average has been directing the price movement down. Meanwhile, the EUR/CAD currency pair has reached the lower boundary of a dominant descending pattern and could be set for a breakout within this session.
If and when the aforementioned breakout occurs, the currency exchange rate could start a second-round of decline during the following weeks.
