EURCAD Neutral

6 июл. 2020 г.

Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame

From last week’s COT report we can notice a hold in the progress of bullish contracts for the Euro . Right now, they are at a record high (345k) so a reverse in the bearish direction is most likely to happen in the near future. While the CAD shows signs for a rapid increase in the “long” contracts.
Since my last report on this pair, the price respected a few more times our wide-angle formation. For more than 3 weeks we are also in a consolidation inside our wide-angle formation.
NOW: There are a few paths the price can take in the upcoming week.
1. Respecting the wide-angle and consolidation, which aligns almost perfectly and going towards the monthly critical in order to form a W formation. Matching with them is the golden 0.618 Fibonacci level, where additional buyer’s support may come in. With this new formation a possible break over the monthly critical is possible.
2. The second possibility is for the price to break our wide-angle formation and consolidation. In this case a move towards the daily critical and afterwards towards the monthly critical are most likely to happen.