EURCAD Technical Analysis 8.1.2017
On June 13/2017 I published an article EURCAD : Sell the Bounce Bearish Pattern where I called for the pair to make another move lower after a bounce/retracement higher. EURCAD since then bounced and continued lower as expected but did not fully close the April 13/2017 market gap as I would have liked it to do. With still a market gap yet to be closed we at ElliottWave-Forecast believe EURCAD will make another push lower and the chart below explains where bears will be waiting to push the pair lower.
EURCAD 4 Hour Chart Bearish Pattern: Traders need to wait for price to hit the BC 0.50% (1.4865) where blue point D can possibly terminate and trigger sells. As long as price stays below the point B high (1.5255) expect EURCAD to continue lower. The area to watch for possible reversal lower is 1.4865 – 1.4920
If looking to sell EURCAD traders should be patient and wait for price to make a move higher towards the BC 0.50% Fib. retracement level at 1.4866. Waiting for price to hit the BC 0.50% Fib. retracement minimum will offer a better risk/reward trade setup. Blue bullish pattern is invalidated if price moves above point B of the pattern.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade.
*** Always use proper risk/money management according to your account size ***