FullTimeTrader
Short

EURCAD-ideal area for a short and why

FX:EURCAD   Euro Fx/Canadian Dollar
1257 5 12
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:
snapshot


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


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
snapshot

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

D1 chart:
- ABC corrective structure unfolding
snapshot

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.
DamodarD
a year ago
Amazing analysis! Thanks
Reply
I think eurcad is longterm up, what do you think?
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morshedul.sazid morshedul.sazid
a year ago
EURCAD Harmonic Pattern Cluster
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FullTimeTrader morshedul.sazid
a year ago
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.
snapshot
+1 Reply
morshedul.sazid FullTimeTrader
a year ago
Thank you :)
Reply
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