EUR/CAD dragonfly props up rallies in major trend but struggles for momentum, failure swings to bring in more slumps on bearish EMA crossover:
The major trend of this pair has been moving through rising channel, where it has formed the double top pattern.
Dragonfly Doji candle occurred at 1.4064 level which is exactly at channel line support (refer monthly plotting).
As a result, the bullish pattern props up rallies, bulls attempt to break the resistance of 1.4378 (21EMA) and 1.4406 levels but double top formation and bearish EMA crossover to evidence more slumps.
In the short run, although bulls have managed to create a fresh high of 1.4598 levels, the trend has been back into the range that has lasted longer since November 2016.
As the current prices have slid below DMAs and from prevailing selling momentum it appears to be continuing bearish streaks as the both leading and lagging indicators are still favoring bearish environment.
Intraday sentiments have been bearish bias, current price potentially seems to be crossing below 21DMA.
We could also see the vigorous momentum taking place again from last couple of hours in these slumps as both leading oscillators are converging downwards to these slumps on intraday charts as well, this can even be coupled with MACD's bearish crossover on monthly charts.
Trade Tips:
Taking above technical reasoning into consideration, on an intraday trading perspective, one touch binary calls are most conducive just to capitalize on prevailing bullish momentum. While on hedging grounds adding shorts in mid-month futures contracts safeguard slumps in this underlying pair.
The major trend of this pair has been moving through rising channel, where it has formed the double top pattern.
Dragonfly Doji candle occurred at 1.4064 level which is exactly at channel line support (refer monthly plotting).
As a result, the bullish pattern props up rallies, bulls attempt to break the resistance of 1.4378 (21EMA) and 1.4406 levels but double top formation and bearish EMA crossover to evidence more slumps.
In the short run, although bulls have managed to create a fresh high of 1.4598 levels, the trend has been back into the range that has lasted longer since November 2016.
As the current prices have slid below DMAs and from prevailing selling momentum it appears to be continuing bearish streaks as the both leading and lagging indicators are still favoring bearish environment.
Intraday sentiments have been bearish bias, current price potentially seems to be crossing below 21DMA.
We could also see the vigorous momentum taking place again from last couple of hours in these slumps as both leading oscillators are converging downwards to these slumps on intraday charts as well, this can even be coupled with MACD's bearish crossover on monthly charts.
Trade Tips:
Taking above technical reasoning into consideration, on an intraday trading perspective, one touch binary calls are most conducive just to capitalize on prevailing bullish momentum. While on hedging grounds adding shorts in mid-month futures contracts safeguard slumps in this underlying pair.