EURCAD is in an interesting situation where we have alternative scenario, where in the short-term they are indicating the same direction but in the long-term are different. The idea is we have a zig-zag correction and also a leading contracting diagonal pattern.
Zig-Zag correction pattern we will see price break below previous low to make new lows, suggesting long-term bearish trend.
Leading Contracting Diagonal pattern suggesting we will make short-term bearish move to complete a corrective pattern as motive waves are always followed by corrections. With that in mind we cant make new low or break old low that would only invalidate the Leading Diagonal scenario.
What are your thoughts?
Zig-Zag correction pattern we will see price break below previous low to make new lows, suggesting long-term bearish trend.
Leading Contracting Diagonal pattern suggesting we will make short-term bearish move to complete a corrective pattern as motive waves are always followed by corrections. With that in mind we cant make new low or break old low that would only invalidate the Leading Diagonal scenario.
What are your thoughts?
