EURCAD-ideal area for a short and why

FX:EURCAD   Euro / Canadian Dollar
1259 5
Hello, i think this pair is just making a pullback and a strong decline should follow.
This bias is based on many reasons i consider to have a better picture and build a strong case before entering a trade.
I know some tradesr are strictly technical, fundamental, ellioticians, price action, harmonic , etc.
I respect it, it is just not me. My trading style is to gather all relevant information i can get to build a solid case and have more confidence before opening a trade.

Looking a monthly chart we have a double top with divergence, a strong bearish signal:

On W1 chart a bearish shark is still working, i expect second target to be reached:

W1 chart technical reasons:
- macd overextended and crossing
- RSI trendline already crossed
- multiple candle spikes from 1.500 showing rejection
- bollinger band duplication: when this happens price should reach the middle of BB at least

EW count: this pair is forming a series of WXY corrective structures, i expect one more WXY structure to the downside:

D1 chart:
- ABC corrective structure unfolding

Fundamental information:
- Commodity currencies like the CAD are getting stronger due to USD weakness, big money is going there , this will continue until nex year since no rate hike is expected for the USD till then
- More QE program expected for the EUR, the EUR is expected to weaken next months or at least be "stable".

Here on H1 chart:
- Bearish cypher
- corrective channel
- trendline resistance
- round level 1.5000

IF price gets there i expect to catch a strong decline.

Best regards.
I think eurcad is longterm up, what do you think?
morshedul.sazid morshedul.sazid
FullTimeTrader morshedul.sazid
Hello, my bias is very short on this pair (see below). There are many potential harmonic patterns on a giving chart, if we can see or draw one of them does not mean price will go there. We need more reasons to consider. Regards.
+1 Reply
morshedul.sazid FullTimeTrader
Thank you :)
Amazing analysis! Thanks
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