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Euro / Canadian Dollar

EUR/CAD IS IN A MINOR BEARISH TREND CHANNEL

By PioTheFx
Updated
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I have opened a position as above.
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If price retract toward the 1.51250 or fails to break the blue level (0.786 Fib) it would be a concern to my position.
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The support level 0.49000 should also be watched for signs of double bottoms or head and shoulder reversal signals, if this fails, a further move would be expected.
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Despite price being in a current bearish trend channel (green bounded), it is a minor channel for the major channel (blue bounded) and thus its support should be watched for signs of giving support
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On the daily chart, bullish retracement is still low to approve for the complete reversal of my position. This is due to the very strong bearish engulfing candle on Thursday last week. Although I will keep an eye on how this plays out.
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Price has kept on being rejected at 0.51000 psychological level.
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A Head and Shoulder pattern might be in formation on the EURCAD
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I have decided to stay on the side line because the right shoulder has been overly extended to imply the there is still a huge un decision.
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In my opinion, the Head and shoulder pattern has failed as the right shoulder has been over extended. Thus price is confined in a channel. Currently the Fib level 0.786 is my bearish signal if breached and 0.61 for bullish signal.
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Despite on being rejected, price has kept on being rejected at the channel resistance, and thus not truly broken the rectangle yet.
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Price breached the channel resistance and paused at 0.52019 resistance level making a retracement and now heading to the level.
Chart PatternsTrend Analysis
PioTheFx

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