EURCAD Top-Down Analysis
Hello Traders,
Here is the Top-Down Analysis of EURCAD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Price faced rejection at monthly resistance level, creating double top and started moving downwards. Price also completed W pattern.
W > Price dropped to test previous resistance now turned support and started a pullback to the upside. Price is also finding support of upward trendline.
D > Price moved up to test daily resistance, faced rejection and dropped back quickly. Price dropped till 0.618 Fib level on weekly bullish impulse. We can see an M formation and expect price to move upward for a pull back and test the neck to complete the formation before continuing with bearish move. Neck also coincides with 0.5 Fib level on last bearish move.
As per COT EUR saw closure of Long and addition of Short for the 2nd time in a row, reducing net positions. EXY however improved its position for the said week because we saw reduction in overall open interest, it did not allow its position to slip. EXY was weak last week. CAD saw addition of major Long and closure of Short positions with Short positions further reducing to least for current year, improving net positions (still in -ve). CXY further gained strength during the said week but weakened a bit last week.
We are aware that EXY is very strong with its open Long positions but CXY is also expected to gain strength because it has stayed with -ve net positions most of this year and its time for it to reverse that. For Long term we expect EXY to weaken and CXY to gain strength but for short term EXY will dominate CXY.
4H > Price has started moving upwards creating HH and HL, we expect price to move up and test our target before reversing to continue with bearish trend.
Pair Correlation > EURCAD has positive correlation with EURGBP and negative correlation with CADCHF, GBPCHF and USDCHF.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURCAD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Price faced rejection at monthly resistance level, creating double top and started moving downwards. Price also completed W pattern.
W > Price dropped to test previous resistance now turned support and started a pullback to the upside. Price is also finding support of upward trendline.
D > Price moved up to test daily resistance, faced rejection and dropped back quickly. Price dropped till 0.618 Fib level on weekly bullish impulse. We can see an M formation and expect price to move upward for a pull back and test the neck to complete the formation before continuing with bearish move. Neck also coincides with 0.5 Fib level on last bearish move.
As per COT EUR saw closure of Long and addition of Short for the 2nd time in a row, reducing net positions. EXY however improved its position for the said week because we saw reduction in overall open interest, it did not allow its position to slip. EXY was weak last week. CAD saw addition of major Long and closure of Short positions with Short positions further reducing to least for current year, improving net positions (still in -ve). CXY further gained strength during the said week but weakened a bit last week.
We are aware that EXY is very strong with its open Long positions but CXY is also expected to gain strength because it has stayed with -ve net positions most of this year and its time for it to reverse that. For Long term we expect EXY to weaken and CXY to gain strength but for short term EXY will dominate CXY.
4H > Price has started moving upwards creating HH and HL, we expect price to move up and test our target before reversing to continue with bearish trend.
Pair Correlation > EURCAD has positive correlation with EURGBP and negative correlation with CADCHF, GBPCHF and USDCHF.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
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منشورات ذات صلة
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.