By: John Ursus
Timeframe: W1 Recommendation: Short Position
Entry Zone: 1.5100 – 1.5150
Take Profit Zone: 1.4550 – 1.4600
Stop Loss Zone: 1.5300 – 1.5350
The EURCAD has rallied sharply without a major retracement which makes the uptrend vulnerable to a bigger correction. After a breakout from its resistance zone this currency pair has formed a bump-and-run reversal formation which may ring in the expected correction.
Buying pressures have subsided near the top of its reversal formation and economic data this week such as the GDP data out of the Eurozone could spark the next move in the EURCAD. The pending correction should take this currency pair back to its former resistance zone which is now a solid support level. A further breakdown will lead to a much larger correction.
