Will EURCAD repeat what it has done back in early June? We are seeing a similar pattern forming recently -
1) Price has been inching higher with a loss of strength and momentum;
2) We are seeing a divergence in RSI and price; and
3) Price is entering the minimum expected area of wave 5.
All these factors gave us the expectation that price has a higher probability of reversing to the downside than going much higher.
Whether we are seeing a short term retracement to the downside, or a full reversal lower, our short term interest remains a sell bias.
*Disclaimer - this is just a humble perspective of the market. Do not take this as a trade call. Make sure you have your proper trading and risk management plan before engaging on any trade.
1) Price has been inching higher with a loss of strength and momentum;
2) We are seeing a divergence in RSI and price; and
3) Price is entering the minimum expected area of wave 5.
All these factors gave us the expectation that price has a higher probability of reversing to the downside than going much higher.
Whether we are seeing a short term retracement to the downside, or a full reversal lower, our short term interest remains a sell bias.
*Disclaimer - this is just a humble perspective of the market. Do not take this as a trade call. Make sure you have your proper trading and risk management plan before engaging on any trade.