EURCAD, Huge Double-Top Formation, BEARISH Flag-Setup!Hello There!
Welcome to my new analysis of EURCAD from the 4-hour timeframe perspective. Within recent times the forex currency pair already emerged with a massive bearish inclination that should not be underestimated especially as the momentum already reached an accelerated point. Now, a major consideration is whether this bearish dynamic holds on or is going to accelerate much more within the upcoming times. In my analysis, I have considered the backend analytics and what should be expected with the pair within the current market situation, especially with the major underlying bearish inclinations.
When looking at my chart now, the most important part of my chart is this gigantic double-top formation with the first and second tops already being completed. Since EURCAD formed the second top within the whole double top formation it heavily accelerated with the bearish momentum finally breaking out below the boundary of the double top formation to accelerate the massive bearishness below these boundaries. Also, important here is that a major bearish EMA crossover is marking a huge resistance and is confirming the bearish downtrend dynamics.
With the completion of the gigantic crucial momentous double-top formation, EURCAD is setting up a massive bearish inclination especially as it is forming the next bearish flag below the boundary breakout zones. This bear flag formation is likely to complete within the next time and is going to accelerate the bearish momentum continuations towards the lower levels. First of all, the first target zone that has been activated is the minimum target zone of 1.409 as marked in my chart. Once this target zone is reached and the bearish momentum accelerates the price is going to continue below these zones.
Taking all these factors into consideration here, EURCAD is now about to set up the next bearish continuation wave which will reach the next bearish acceleration triggers once the bear flag formation to complete the double top confirmation has been finally completed with a breakout towards the downside. Depending on the bearish momentum that is going to prevail after the breakout setup it will be important on how the bearish momentum actually sets up and how it reaches the target zones. Because, especially when the momentum increases by 4x in momentum pace there is a high possibility for the bearish continuation to move further into the bearish ground continuation. It will be a highly crucial determination.
In this manner, thank you everybody for watching my analysis of EURCAD. Support from your side is greatly appreciated.
VP
