Nothing is definite yet, but I will be looking for signs of possible Euro weakness, on this chart, and on other Euro pairs.
This trade setup is similar to how I shorted GBPUSD towards the end of last week, using the Stochastic Oscillator and selling at resistance
I called this setup a symmetrical triangle but the resistance trendline was broken, mainly due to CAD weakness.
So, how I shorted GU was price reached resistance while the Stochastic was overbought.
It appears that the same exact setup will be forming on this EURCAD trade, as price reaches resistance at 1.3960 - by then the stochastic oscillator will be overbought. Rather, the Stochastic is already overbought, but it is lagging, so it will range in the overbought area for a couple 4h candles while price consolidates.
Then I will wait for a relatively strong bearish confirmation candle and the Stochastic crossing under 80.
That has to go to 1.4000 before dropping That area is 38.2 fib of the abcd pattern
MtxTrader
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@mavusane, Makes sense, I just don't use Fibs so I'll convert my resistance to the fib and make it an area of resistance rather than a line. Thanks for your perspective.