Spinning top and Doji at resistance signal EUR/CAD weakness
It is spotted out a long legged doji and spinning top pattern candles formed on weekly charts of EURCAD to highlight a caution for bulls.
As you can observe spinning top and doji on weekly charts has occurred exactly at resistance around 1.53 levels that is to be considered as a caution of previous of upswings.
However, these signals can't be deemed as bullish reversal as we also noticed a tight tug of war between both the sides (see grey shaded areas for robust volume build ups during steep slumps and sharp spikes).
In addition to that, leading oscillators began evidencing divergence to the previous price rallies.
RSI (14) trending at 65.7945 with every price declines; it has been showing the same indication right from 65 levels which is near overbought territory. So, RSI signifies the prevailing down streaks may sustain for minor slumps.
While another leading oscillator (slow stochastic) hints us the overbought heaviness through %D crossover above 80 levels which overbought zone though the bulls don't seem to lose rallies built by healthy volumes.
Hence, most likely scenario during 1st week of 2016 is to show retracements upto 23.6% (i.e. 1.4943 levels).
The trading recommendation would be good to buy binary puts of EURCAD on every rally for targets at 30-40 pips.
As you can observe spinning top and doji on weekly charts has occurred exactly at resistance around 1.53 levels that is to be considered as a caution of previous of upswings.
However, these signals can't be deemed as bullish reversal as we also noticed a tight tug of war between both the sides (see grey shaded areas for robust volume build ups during steep slumps and sharp spikes).
In addition to that, leading oscillators began evidencing divergence to the previous price rallies.
RSI (14) trending at 65.7945 with every price declines; it has been showing the same indication right from 65 levels which is near overbought territory. So, RSI signifies the prevailing down streaks may sustain for minor slumps.
While another leading oscillator (slow stochastic) hints us the overbought heaviness through %D crossover above 80 levels which overbought zone though the bulls don't seem to lose rallies built by healthy volumes.
Hence, most likely scenario during 1st week of 2016 is to show retracements upto 23.6% (i.e. 1.4943 levels).
The trading recommendation would be good to buy binary puts of EURCAD on every rally for targets at 30-40 pips.
