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  • EUR/CAD bears seeking an optimal entry on the hourly time frame.
  • Daily bearish trend is compelling as price is capped on the correction.  

EUR/CAD’s upside correction has been capped by a significant Fibonacci level and the focus remains firmly on the downside.

The following is a top-down analysis that illustrates the bias.  

Daily chart

The daily chart’s trajectory is south which raises prospects of a short opportunity from the lower time frames.  

4-hour chart

With the price still above the 21-SMA, however, bears will need to be patient for a little while longer until break of support.  

However, until news closes on the 4-hour time frame, the nearest support structure is some way off.

1-hour chart

From a 10hour perspective, the current support structure offers a faster entry point to target the downside from a restest of the support that would be expected to act as resistance.  

Momentum is bearish and the price is well below the 21-SMA.