EURCAD reversal idea
I have been watching the CAD pairs recently because of recent news about the balance of trade deficit making a record high. This is bad news for the CAD, looking at the balance of trade historically, it is trending into more deficit. The reason this is bad news is because it means Canada needs to sell more CAD dollars and buy mostly US and Euros to cover the deficit. This places upward pressure on this pair.
RSI has also made a recent bullish divergence indicating that the current downtrend and selling of the Euro maybe weakening. Could this be institutions rebalancing their portfolios in anticipation of the weakening CAD.
I am bullish on this pair. However I would wait for a pullback in price to a Fibonacci level before entering long. This will give you a good entry price and allow for a tight stop which gives a potential good risk/reward.
Exit this trade if the uptrend begins to show signs of weakness.
RSI has also made a recent bullish divergence indicating that the current downtrend and selling of the Euro maybe weakening. Could this be institutions rebalancing their portfolios in anticipation of the weakening CAD.
I am bullish on this pair. However I would wait for a pullback in price to a Fibonacci level before entering long. This will give you a good entry price and allow for a tight stop which gives a potential good risk/reward.
Exit this trade if the uptrend begins to show signs of weakness.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.