What we are seeing now -
1) Price is forming a diagonal structure
2) Price has entered the potential reversal zone between 123.6% to 161.8% fibonacci level
3) An divergence
A technical break of the lower of the diagonal structure will potentially fuel the sell down lower towards 1.4650 area.
So what's next for EURCAD? We believe that there is still more room for price to move lower.
However, we always share with traders - DO NOT jump onto a trade at the end of an impulse move.
Here's two scenarios that can possibly happen -
1) Price starts to form a corrective move, or
2) Price starts to form a reversal move.
If price forms a corrective move, we are good to short it for another move lower.
If price forms a reversal move, we are good too! We will wait and reanalyse again :)
What are your views on EURCAD?