What we are having presently is price reacting to a probable end of an impulsive move on the daily chart which started in march.
This move is terminating at a resistance ( 0.8600) and price should start reversing in a new journey to 0.8150 (a support close to 61.8% retracement of this move).
This impulsive move is part of a retracement of the long term bearish move of this pair which could still move which could take us to as high as 0.8870 before the bearish move should continue.
At the moment, a corrective move is expected to 8150 and a bit below before the bullish renewal which could take us to 8870.
Hello folks.
Check the analytical charts below to grasp my view on Eurcad analysis for the short term and long term.
As price brings more data...I will update you
This pair is looking so interesting as a recognizable pattern is forming.
18th March this year signalled the end of the impulsive wave that started on 10th June,2013. Presently the price is correcting with a zigzag corrective pattern.
We might not know when this correction will end for the bullish move to continue but we can calculate and forecast a possible reversal zone to end the correction.
The zone indicated below is very strong due to the confluence of levels--50% of the impulsive 5-wave move, 161.8% extension of wave a from wave b,diagonal and and horizontal trendlines (strong support zone).
I will wait for the market to get to this zone and watch for action around there. If price doesnt penetrate the zone in high momentum, I will look for bullish reversal signals and buy...
Check the chart below to get the picture clearer.
