EURCAD - At Decision Point: Break down or one more up?

Tonight's US Oil Inventory and tomorrow ECB press conference will potentially be the catalyst to move this pair.

What we are seeing now -

1) Price is forming a diagonal structure
2) Price has entered the potential reversal zone between 123.6% to 161.8% fibonacci level
3) An RSI divergence

A technical break of the lower trend line of the diagonal structure will potentially fuel the sell down lower towards 1.4650 area.

הערה:

So what's next for EURCAD? We believe that there is still more room for price to move lower.

However, we always share with traders - DO NOT jump onto a trade at the end of an impulse move.

Here's two scenarios that can possibly happen -

1) Price starts to form a corrective move, or
2) Price starts to form a reversal move.

If price forms a corrective move, we are good to short it for another move lower.

If price forms a reversal move, we are good too! We will wait and reanalyse again :)

What are your views on EURCAD?