FxWirePro

EUR/CAD selling momentum reduced but no trace of buying

FX:EURCAD   Euro / Canadian Dollar
78 0 1
Ever since the pair has formed double top pattern with peak 1 at 1.6105 and peak 2 at 1.5913 levels, long term traders who have their FX receivable exposures are be worried as euro             value kept tumbling almost about 9.78% from the highs of 1.6105 to the recent lows of 1.4529.

Break out below 1.4949 and the neckline of double top has more downside potential, currently at 1.4701 level, even if rises from here we could foresee minor resistance at 1.4738 levels,

We see all chances of retesting 3 months lows if it doesn't hold current levels.

In addition to that, shooting star at peaks of 1.5127 occurred to substantiate this bearish stance.

Rising volumes are inn conformity to the dipping prices since then.

However, from mid last week the selling momentum is reduced as the pair holding stronger supports at 1.4555 levels, anytime prices dips may resume as the major bearish trend seems stronger from last 3 months.

Both leading and lagging indicators are still favouring bearish environment.

Only intraday sentiments have been bullish bias but 21DMA continued crossed over 7DMA at this juncture (which is sell signal) keeps us bearish in medium trend as well.

RSI and stochastic on daily terms signals nothing but indecision.

Trade Tips:

Taking the above technical reasoning into consideration, on speculative terms staying short in near month futures on every rally for targets of 1.4555 with strict stop loss at 1.4738 (additional tolerance of 10-15 pips) makes very attractive risk reward ratio.
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