Last week, we posted an analysis EURCAD - At Decision Point: Break down or one more up?
Price didn't break down immediately with the risk events from Oil Inventories and ECB Press Conference, but earlier this week, with the un-scheduled news release from Bank of Canada (BOC) stating a potential rate hike strengthened the CAD significantly, pushing EURCAD lower as forecasted.
So what's next for EURCAD? We believe that there is still more room for price to move lower.
However, we always share with traders - DO NOT jump onto a trade at the end of an impulse move.
Here's two scenarios that can possibly happen -
1) Price starts to form a corrective move, or
2) Price starts to form a reversal move.
If price forms a corrective move, we are good to short it for another move lower.
If price forms a reversal move, we are good too! We will wait and reanalyse again :)
What are your views on EURCAD?
Price didn't break down immediately with the risk events from Oil Inventories and ECB Press Conference, but earlier this week, with the un-scheduled news release from Bank of Canada (BOC) stating a potential rate hike strengthened the CAD significantly, pushing EURCAD lower as forecasted.
So what's next for EURCAD? We believe that there is still more room for price to move lower.
However, we always share with traders - DO NOT jump onto a trade at the end of an impulse move.
Here's two scenarios that can possibly happen -
1) Price starts to form a corrective move, or
2) Price starts to form a reversal move.
If price forms a corrective move, we are good to short it for another move lower.
If price forms a reversal move, we are good too! We will wait and reanalyse again :)
What are your views on EURCAD?
