Daily bullish W-formaiton in focus

• EUR/CAD is on the backfoot but dynamic support could play a role in a bullish correction.
• Bears will target a downside extension from the daily W’s neckline resistance area. 

EUR/CAD on the brink of an upside rejection according to the daily chart’s structure. The following is a top-down analysis that supports a bullish bias for the near term before a downside continuation into familiar weekly support. 

Monthly chart

The price is trapped between a monthly support and resistance areas. 

Weekly chart

The price is attempting to break out to the upside but has failed and the support zone is compelling. 

Daily chart

As illustrated, the W-formation on the daily chart offers a the case for the upside to the neckline and prior resistance/support structure. 

The dynamic support would be expected to hold and there is a high probability that the price will retrace at least a 38.2% Fibonacci retracement of the latest bearish impulse.

In doing so, the price would then be expected to continue in the bearish trajectory to challenge the familiar support area.