Bearish Diamond On EURCAD
FХ Strategist & Financial Commentator
After a powerful rally that brought the quotes back to 1.60 area, during the last 7 trading sessions this pair has made a fast correction towards 1.5250 nearby the last bullish gap set between March 6th and 9th.
During this week EuroCad is moving within a trading range, forming a bearish figure that in technical analysis is called diamond with the quotes that are currently working around 1.55 area. This bearish figure is quite rare, but very reliable.
Looking at the RSI indicator, we can see how it is continually falling, giving a further confirmation of the bearish setup that is currently in progress and that could favour an ulterior relative strength recover for the Canadian dollar.
The setup would be activated in case of a breakdown of yesterday’s bottom at 1.54. The stop loss should be placed above the weekly tops at 1.58 while the target price must be set around 1.50 area nearby the tops set on August 2018.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.