Hello, dear traders and friends. Let's take a closer look at the EURCAD chart and examine the potential selling opportunity in this pair together.
Firstly, we can clearly observe a bearish trendline in the 1-hour timeframe, connecting lower highs. This trendline suggests the possibility of a bearish bias for this currency.
Secondly, when you examine the Daily timeframe for this pair, you'll notice that the price broke above the bearish trendline last week but failed to follow through and has since consolidated around the bearish trendline. This appears to be a false breakout.
Furthermore, the price's bullish moves seem to occur in a corrective manner, indicating a lack of clear intention for a bullish move, at least for now.
For a more conservative trading approach, you can consider waiting for a bearish breakout of the short-term bullish trendline or simply waiting for a candlestick confirmation to validate a downward movement.
It's also worth noting that there's a possibility that the price may test the previous top formed and extract liquidity from there before reversing to the downside.
by the way If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Firstly, we can clearly observe a bearish trendline in the 1-hour timeframe, connecting lower highs. This trendline suggests the possibility of a bearish bias for this currency.
Secondly, when you examine the Daily timeframe for this pair, you'll notice that the price broke above the bearish trendline last week but failed to follow through and has since consolidated around the bearish trendline. This appears to be a false breakout.
Furthermore, the price's bullish moves seem to occur in a corrective manner, indicating a lack of clear intention for a bullish move, at least for now.
For a more conservative trading approach, you can consider waiting for a bearish breakout of the short-term bullish trendline or simply waiting for a candlestick confirmation to validate a downward movement.
It's also worth noting that there's a possibility that the price may test the previous top formed and extract liquidity from there before reversing to the downside.
by the way If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Comment:
we were expecting price to finish its bullish corrective move by the time it was testing our first resistance area showing in the chart by horizontal arrow. however, there were a chance for price to goes higher to test the top. For now as long as price remain below the second arrow line we anticipate trend as bearish and looking for shorting opportunities.
Order cancelled:
price did react from both trading zones mentioned in the chart but failed to break the short term bullish trend line and continue its bullish move.