FxWirePro: Double top with bearish EMA crossover to evidence more EUR/CAD slumps, both leading and lagging indicators substantiate –Short mid-month futures

The upswings of this pair in the beginning of this week were not able to break and sustain above 21DMA levels where it has tested resistance several times in the past.

Prior to this, the pair has formed double top formation on both daily as well as monthly terms.

On daily – with top 1 at 1.4361 levels, and top 2 at 1.4308 levels.

On monthly – with top 1 at 1.5586 levels, top 2 at 1.6105 levels.

As a result of this bearish pattern the current prices have gone below DMAs and EMAs again, you could also observe bearish EMA crossover on monthly charts.

The double top pattern is occurred between rising channel and is taking support at channel baseline.

Can bears manage to break below strong support @ 1.3962?

Any break below may drag the slumps up to next strong supports of 1.3387 levels.

Failure swings below this level can be conducive of the major downtrend and the retest of 2015 lows of 1.2989 levels can also not to be disregarded.

From prevailing selling momentum, it appears to be continuing bearish streaks as the both leading and lagging indicators are still favoring bearish environment (so, potentially immediate supports of 1.3962 seems to be more likely).

Intraday sentiments have been bearish bias, potentially 21DMA seems to be crossing over 7DMA again at this juncture which is the bearish signal.

This bearish stance can even be coupled with MACD's bearish crossover on monthly charts.

Trade Tips:

Taking above technical reasoning into consideration, on an intraday trading perspective one touch binary puts are most conducive just to capitalize on prevailing bearish momentum. While on hedging grounds adding shorts in mid-month futures contracts safeguard slumps in this underlying pair.