FX.co ★ EUR/CAD

I’ve been analyzing the EUR/CAD currency pair on the four-hour chart, and the recent price action clearly suggests a shift in momentum toward the downside. Yesterday, the pair reversed direction from the 1.61185 level, and since then, it has continued to move lower in a steady manner. This reversal point appears to have acted as a strong resistance zone, marking the beginning of the current bearish movement. At the moment, the price is trading around 1.60709, which places it firmly within the bearish zone of the Bollinger Bands indicator. What stands out to me is that the bands themselves are sloping downward quite strongly, indicating increasing bearish momentum. When the Bollinger Bands expand and point downward like this, it usually reflects a strengthening trend rather than a temporary fluctuation. In addition to that, I’m paying close attention to the position of the moving average. Currently, the moving average is located above the price, which reinforces the bearish outlook. This setup suggests that the market is trading below its average value, a common sign that sellers are in control. The Relative Strength Index (RSI) is also supporting this view. It is currently positioned below the midpoint level, which indicates that bearish pressure outweighs bullish momentum. While the RSI is not yet in oversold territory, its position below the center line confirms that the market sentiment is leaning toward the downside.

Another important signal comes from the MACD indicator. The histogram is currently below the zero line, which further confirms the presence of negative momentum. This alignment between the Bollinger Bands, moving average, RSI, and MACD gives me a strong level of confidence in the bearish scenario. Based on this combination of technical indicators, I expect the price to continue moving downward. My target for this move is around the 161.8% Fibonacci extension level, which is located at 1.59556. This level represents a common target for trend continuation after a reversal, and it aligns well with the current bearish structure of the market. Of course, I remain aware that markets can change direction unexpectedly, so I continue to monitor price action closely for any signs of reversal. However, as long as the indicators remain aligned in this way, I see no strong reason to shift my bearish bias. In summary, the EUR/CAD pair is currently showing a consistent and well-supported downward trend on the four-hour chart. With multiple indicators confirming bearish momentum, I am focused on the potential continuation of this move toward the 1.59556 level.