EURCAD has experienced a major structural shift after failing to push past the heavy red resistance zone near the 1.6250 level. Following a clear rejection at the Wave B high, sellers stepped in aggressively, forcing a clean breakdown through both the long-term ascending trendlines and the key grey S&R support zone (1.6130–1.6170). This decisive daily close below these levels completely invalidates the previous bullish trend structure.With those major barriers giving way, the path of least resistance is firmly pointing downward. The market is now actively drawing toward the pink "ABC Target" box sitting between 1.5970 and 1.6010, which represents the completion of the bearish Wave C leg. The breakout below the S&R zone acts as a clear signal that sellers are in control and are seeking out deeper pools of liquidity.
Ultimately, this breakdown represents a classic shift in market environment. After multiple failed attempts by buyers to penetrate the overhead red ceiling, the aggressive breach of both diagonal and horizontal support suggests a major distribution phase is complete. Going forward, the old grey S&R level should act as solid overhead resistance as the market continues its clear draw toward the downside target.
Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.