EUR/CAD Price Analysis: Easy around 1.4400, bearish flag in focus

• EUR/CAD consolidates weekly gains inside a bearish chart pattern.
• 20-DMA restricts immediate downside, August month’s low becomes the key hurdle.

EUR/CAD takes offers to refresh intraday low near 1.4400, down 0.08% on a day as European traders brace for Friday’s bell.

The cross-currency pair steps back from the monthly rising channel around the lowest levels since February 2020, forming part of a broader bearish flag formation between 1.4450 and 1.4300 levels.

However, 20-DMA around 1.4380 restricts the quote’s immediate declines ahead of directing it to the formation support of 1.4300.

Should the EUR/CAD prices stay weaker past 1.4300, the bearish chart pattern gets confirmed, which in turn hints at around 600 pips of a downside. Though, lows marked during 2020 and 2017, respectively near 1.4250 and 1.3780, act as additional downside filters to watch.

On the flip side, a daily closing beyond 1.4450 will defy the bearish flag and can trigger a gradual run-up towards August month’s bottom surrounding 1.4665. During the rise, May’s trough of 1.4580 can offer an intermediate halt.

In a case where the EUR/CAD bulls dominate past 1.4665, the trend reversal can aim for the 1.5000 psychological magnet.

EUR/CAD: Daily chart

Trend: Further weakness expected