Further drop for EURCAD?
Above you can see the daily chart of EURCAD with an activated big bullish sequence (blue).
Since it's a bullish sequence and the chart looks pretty cheap overall (Monthly chart), we would like to see some possible buy areas!
After the first correction to point B we were able to define a new high (number 1). If the market comes down after the previous scenario, we can draw the BC correction level which I named "Previous BC Correction Level" because it is not the current right one.
The market slightly over-extended but created a new higher low (number 2) which led to nearly a same high like point 1. (Nevertheless it's a little bit higher, which led to a new BC-correction level).
Of course this whole move doesn't look like there were enough bulls in the market to push the market further to the top.
EURCAD started a bearish sequence from up there (black) which has its target area right around the point B from blue. We need to remember that every low and every high is a liquidity zone.
As you can remember the low at point 2 gained not enough power from the bullish perspective. The following green bearish sequence seems like it was just drawn right in the middle of the chart. Unfortunately I'm not able to show you more pictures especially from the lower timeframes. I am missing reputationpoints haha. You could see that this sequence started after a consolidation phase which therefore is a valid opportunity to define a new sequence.
The green BC correction level worked very good. The next very attractive buy area is obvious. The green target zone slightly overlaps with the 0.667 line from blue. Since we are still in a valid buy area from the daily chart, this is a nice buy chance we need to consider. Another reason is the price area around point 2, which defines a nice liquidity area. Maybe it just needs to catch a few more buyers to reach new highs.
In perspective of price action it is also possible that it will even go further down towards the black target, to offer a cheaper price which can lead to a gain of a lot of buyers.
Conclusion: I'm looking for buys, especially at the overlapping area of green and blue. If the market is able to build some bullish structure before reaching the previous mentioned area, I will risk buys aswell, since the big blue BC correction level has more supremacy.
Since it's a bullish sequence and the chart looks pretty cheap overall (Monthly chart), we would like to see some possible buy areas!
After the first correction to point B we were able to define a new high (number 1). If the market comes down after the previous scenario, we can draw the BC correction level which I named "Previous BC Correction Level" because it is not the current right one.
The market slightly over-extended but created a new higher low (number 2) which led to nearly a same high like point 1. (Nevertheless it's a little bit higher, which led to a new BC-correction level).
Of course this whole move doesn't look like there were enough bulls in the market to push the market further to the top.
EURCAD started a bearish sequence from up there (black) which has its target area right around the point B from blue. We need to remember that every low and every high is a liquidity zone.
As you can remember the low at point 2 gained not enough power from the bullish perspective. The following green bearish sequence seems like it was just drawn right in the middle of the chart. Unfortunately I'm not able to show you more pictures especially from the lower timeframes. I am missing reputationpoints haha. You could see that this sequence started after a consolidation phase which therefore is a valid opportunity to define a new sequence.
The green BC correction level worked very good. The next very attractive buy area is obvious. The green target zone slightly overlaps with the 0.667 line from blue. Since we are still in a valid buy area from the daily chart, this is a nice buy chance we need to consider. Another reason is the price area around point 2, which defines a nice liquidity area. Maybe it just needs to catch a few more buyers to reach new highs.
In perspective of price action it is also possible that it will even go further down towards the black target, to offer a cheaper price which can lead to a gain of a lot of buyers.
Conclusion: I'm looking for buys, especially at the overlapping area of green and blue. If the market is able to build some bullish structure before reaching the previous mentioned area, I will risk buys aswell, since the big blue BC correction level has more supremacy.
כתב ויתור
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