From the weekly perspective, price is creating an impulse followed by a correction, and expect new impulse to the upside. And from the daily perspective, price is facing a strong supply zone right now, if the price manages to break this level, further upside is expected.
From the COT perspective, hedge funds are still bearish bias on CAD, and from the longer-term perspective, the total of short positions (58k) is greater than the total of long positions (23k), and they were added another 8.9k of short positions in the latest week. in this case, may see CAD become weaker, and EURCAD will push to the upside.
The proper way to approaching this pair should be waiting for the daily price break and close above the strong supply area with clear price action if the price manages to do it, then we can confirm the bullish environment starting and switch to 4H to monitoring the long confirmation, if there have shown one of the valid rules of me, I will take a nice long on EC with a good risk-reward. Otherwise, EC may continue consolidating and push to the downside.
Remember, always react to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.
From the COT perspective, hedge funds are still bearish bias on CAD, and from the longer-term perspective, the total of short positions (58k) is greater than the total of long positions (23k), and they were added another 8.9k of short positions in the latest week. in this case, may see CAD become weaker, and EURCAD will push to the upside.
The proper way to approaching this pair should be waiting for the daily price break and close above the strong supply area with clear price action if the price manages to do it, then we can confirm the bullish environment starting and switch to 4H to monitoring the long confirmation, if there have shown one of the valid rules of me, I will take a nice long on EC with a good risk-reward. Otherwise, EC may continue consolidating and push to the downside.
Remember, always react to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.