The shocking CAD CPI news released an hour ago (CPI missed by .3%) has seen a sustained
period of CAD SELLING and now this BULLISH EUR/CAD strength is faltering as it is across all CAD pairs and we look to be entering a period of SELLING in order to unwind overbought RSI readings.
On the H1 time frame we have a potential double top at WR1 though the second candle has not yet completed and there's every possibility that EUR/CAD BULLS haven't finished with this market and may attempt to send the price higher.
We do have a confirmed SELL signal on the Andean Oscillator and the current H1 candle seems certian to be a doji so there are confirming signs that this pair may be headed south.
With a STOP above the recent high at 1.4774 we can get this trade on with a tight 13 pip STOP and hope that we can get a breakeven stop in the next hour if the price does indeed head south.
This is a soft STOP however and it will be adjusted if we get a burst of buying that threatens the STOP but as this buying would be sending the RSI back into o.b. then I expect SELLERS to eventually push the price back south.
Its by no means a done deal this trade and its always risky trading against the news with CAD being overwhelming BEARISH but buyers are certain to enter this market, its just a question of when.
Hopefully its now.
period of CAD SELLING and now this BULLISH EUR/CAD strength is faltering as it is across all CAD pairs and we look to be entering a period of SELLING in order to unwind overbought RSI readings.
On the H1 time frame we have a potential double top at WR1 though the second candle has not yet completed and there's every possibility that EUR/CAD BULLS haven't finished with this market and may attempt to send the price higher.
We do have a confirmed SELL signal on the Andean Oscillator and the current H1 candle seems certian to be a doji so there are confirming signs that this pair may be headed south.
With a STOP above the recent high at 1.4774 we can get this trade on with a tight 13 pip STOP and hope that we can get a breakeven stop in the next hour if the price does indeed head south.
This is a soft STOP however and it will be adjusted if we get a burst of buying that threatens the STOP but as this buying would be sending the RSI back into o.b. then I expect SELLERS to eventually push the price back south.
Its by no means a done deal this trade and its always risky trading against the news with CAD being overwhelming BEARISH but buyers are certain to enter this market, its just a question of when.
Hopefully its now.
Trade active:
STOP moved to 1.4747 (+38 pips)
Trade active:
STOP 1.4737 (+48)