EURCAD Short SignalAnalysis: Why EURCAD is bearish
1. inversion fair value gap (IFVG):
Price has reached the marked Inversion Fair Value Gap (IFVG) at the 1.49589 area, which serves as a resistance zone. Liquidity is often tapped in such areas before a reversal movement sets in. The decline from the IFVG area indicates that sellers have become active.
2nd Fibonacci retracement level:
The 70.5% level (1.49630) is a significant resistance area. These levels are often used to open short positions, especially when they coincide with other resistance indicators, such as the IFVG in this case.
3rd order block (OB-):
Price has tested a previous bearish order block (OB), which is also in the resistance zone. This area is often used as an entry point for sellers, as many sell orders are collected there.
4. structural reversal:
The recent move into the resistance area shows a clear reaction, indicating a possible reversal to the downtrend. As long as the price does not form significant higher highs, the overall structure remains bearish.
Conclusion:
EURCAD is showing clear signs of a bearish reversal. The IFVG area, Fibonacci resistances and the order block reinforce the case for a short position. A potential target could lie in lower support areas if the price continues to form low highs and lows.
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