EUR/CAD : Bearish Patterns Calling Lower?
|EURCAD : Bearish market patterns can be seen on the EURCAD pair. In the first chart below both the blue and pink bearish patterns already triggered SELLS on the 15 minute time frame. Blue bearish pattern triggered SELLS at the BC 0.50% Fib. retracement level and the pink bearish pattern triggered SELLS at the XA 0.886% Fib. retracement level. We have yet to see if price will respect these pattern levels and continue lower. At the moment we already had a minor reaction lower from these levels and price has made a small move lower but traders will need to wait for more confirmation after the market opens this week. Zooming out to the EURCAD 1 hour chart there are more clear visible bearish patterns which can also be signalling for a continuation lower this coming week. The 1 hour chart shows price has respected the green bearish AB=CD pattern at the 1.0% Fib. extension level and price has also broken below the bottom of the black channel trend line which can be added confirmation for more downside in the coming week. There is also a bearish pattern (orange) that has triggered SELLS and has yet to hit the target trend line. If looking to trade EURCAD a soft stop should be placed at the point B high of the blue bearish pattern for tight stops and a hard stop at the April 16/2019 high. Above the April 16/2019 high invalidates all bearish scenarios. If price continues lower traders should watch for the move lower to hit targets as shown on the 1 hour chart. The targets (black) are based on the blue bearish pattern BC 0.50% entry. Overall as long as the April 16/2019 high holds EURCAD has a strong possibility of continuing lower. Only time will tell what EURCAD will do but for the meantime we remain bearish.
EURCAD 15 Minute Chart 4.19.2019
EURCAD 1 Hour Chart 4.19.2019
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