The EUR COT Report came in positive once again and pushed the record long contract sizes even more. A few days ago, we’ve reached a major supply zone which may be a trigger for a increase in the short contract sizes.
As we predicted for the EURCAD, price reached right below the 1.60000 area, where it was met by strong supply pressure. This may push price towards the weekly bottom trendline near 1.52000. It aligns perfectly with the daily critical zone and with the 0.5 Fibonacci level. As we’ve seen many times in the past, price likes to move a bit below the weekly trendline before it once again moves above it, and this is why I suspect that price may even reach the 1.47000 mark.
Right now, for the first down wave we have 2 possible scenarios for EUR/CAD: 1.Price moving straight towards the weekly trendline near 1.52000. 2.Price building another top near 1.60000 before going towards 1.52000.