FxWirePro: EUR/CAD forms double top in rising channel, Can bears manage to break below strong channel support?

The major trend of this pair has been moving through rising channel, where it has formed the double top pattern.

Although the dragonfly doji candle occurred at 1.4064 level which is exactly at channel line support (refer monthly plotting), consequently, it has shown its bullish effects as stated earlier.

But bulls’ attempts of breaking above resistance of 1.4378 (21EMA) and 1.4406 levels and sustenance above have been failed. Currently, the major trend is heading back southwards. Channel support has been extremely crucial for intermediary bears.

For now, the series of bearish indications are popping up such as double top formation, shooting star and bearish EMA crossover to evidence more slumps.

In short run, although bulls have managed to test support at 1.4080 levels and bounce back, the bullish sentiments are not backed by momentum and trend indicators.

As the current prices are still below DMAs despite the attempts of spikes and it appears to be continuing bearish streaks as the both leading and lagging indicators are still favoring bearish environment.

Intraday sentiments have been indecisive; the current price potentially seems to be still well below 21DMA.

We could also see the vigorous momentum taking place again from the last couple of hours in these slumps as both leading oscillators are converging downwards to these slumps on intraday charts as well, this can even be coupled with MACD's bearish crossover on both daily and monthly charts.

Trade Tips:

Taking above technical reasoning into consideration, on an intraday trading perspective boundary binary options are most conducive as the current bullish sentiment is not substantiated by momentum indicators, use upper strikes at 1.4213 and lower strikes at 1.4080. While on hedging grounds adding shorts in mid-month futures contracts safeguard slumps in this underlying pair.