EUR/CAD Bearish Engulfing In Play.
OUTLOOK:
EUR/CAD Reached a high of 1.40203 (50% of long tail pin bar) before closing below 1.37600 area (neckline of inverted Head & Shoulder pattern found on the daily chart) - inline with recent analysis where bear confirmation was required before a short could be placed.
Expect a slight pullback to the upside near weekly 61.8% fib level before prices break lower to the downside for a target of 1.35114 (weekly 76.4% Fib level - support).
BEAR INDICATORS:
1. Long tail pin bar
2. Deliberation Pattern (reversal pattern)
3. Bearish Engulfing Pattern (Engulfing previous two bull candles)
4. Price closed below expected target of 1.37600 area (neckline of inverted Head & Shoulder pattern)
BULL INDICATORS:
1. Price still trading within weekly trend line - support.
TARGET
Target 1 - 1.35114
EUR/CAD Reached a high of 1.40203 (50% of long tail pin bar) before closing below 1.37600 area (neckline of inverted Head & Shoulder pattern found on the daily chart) - inline with recent analysis where bear confirmation was required before a short could be placed.
Expect a slight pullback to the upside near weekly 61.8% fib level before prices break lower to the downside for a target of 1.35114 (weekly 76.4% Fib level - support).
BEAR INDICATORS:
1. Long tail pin bar
2. Deliberation Pattern (reversal pattern)
3. Bearish Engulfing Pattern (Engulfing previous two bull candles)
4. Price closed below expected target of 1.37600 area (neckline of inverted Head & Shoulder pattern)
BULL INDICATORS:
1. Price still trading within weekly trend line - support.
TARGET
Target 1 - 1.35114
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