As I noted in my "Euro complex" post last week (before ECB), EURCAD was testing important weekly supports ard 1,4500+. I pointed out, that further CAD appretiation ag. EUR was quite limited and unlikely. CAD needs some consolidation or correction here. Let's check the details.
Weekly:
- Trend is still bullish. Ichimoku setup still has bullish bias.
- Price reached strong weekly supp/res last week ard 1,4500 (dipped even below), where we have spot Kumo, Senkou B and 100 WMA.
- haDelta/SMA3 warned you already last week, that this heavy drop and bearish momentum might have got closer to its limit. After printing an extreme low, haDelta spiked above SMA3. This week HA candle shows undecision.
- EWO back to neutral, but given EWO peaks, I can say we only had the 3rd Bullish wave in. 5th Wave is still likely ahead of us. In 5th wave EWO will make a lower high than its previous, forming a divergence. That's how we'll suppose the bullish trend close to exhaust.
Daily:
- Nice bearish move, which sent Price below Kumo. But Chikou Span (lagging line) has not dropped below past Kumo, so did not confirm continuation of this bearish trend!
- supp/res area is 1,5075-1,5200
- Heikin-Ashi is noisy, with counter bullish bias. haDelta points up. Oscillator is bullish too. --> we can expect more consolidation or swing up towards 1,51.
Right now I do not see any high probability setup, therefor I am neutral and don't take any position.
Those who opened strategic short anywhere above 1,50, probably still feel comfortable holding. Playing counter trend long in small may work, but be careful, as volatility has increased. (adjust position size or nominal stop level!)
Weekly:
- Trend is still bullish. Ichimoku setup still has bullish bias.
- Price reached strong weekly supp/res last week ard 1,4500 (dipped even below), where we have spot Kumo, Senkou B and 100 WMA.
- haDelta/SMA3 warned you already last week, that this heavy drop and bearish momentum might have got closer to its limit. After printing an extreme low, haDelta spiked above SMA3. This week HA candle shows undecision.
- EWO back to neutral, but given EWO peaks, I can say we only had the 3rd Bullish wave in. 5th Wave is still likely ahead of us. In 5th wave EWO will make a lower high than its previous, forming a divergence. That's how we'll suppose the bullish trend close to exhaust.
Daily:
- Nice bearish move, which sent Price below Kumo. But Chikou Span (lagging line) has not dropped below past Kumo, so did not confirm continuation of this bearish trend!
- supp/res area is 1,5075-1,5200
- Heikin-Ashi is noisy, with counter bullish bias. haDelta points up. Oscillator is bullish too. --> we can expect more consolidation or swing up towards 1,51.
Right now I do not see any high probability setup, therefor I am neutral and don't take any position.
Those who opened strategic short anywhere above 1,50, probably still feel comfortable holding. Playing counter trend long in small may work, but be careful, as volatility has increased. (adjust position size or nominal stop level!)
