Earlier, we posted an analysis on EURCAD, which stopped us out during its dump down. We were anticipating a corrective move which did not trigger. Market has lower lows and lower highs and the structure is bearish with the bearish trend. We will be looking to short the market from the resistance level at the price of 1.3080. And we will target the next bearish leg down. 

The descending trendline has been rejected by the market price action where as, the ascending trendline is on the verge of being broken out for sells once its validated. The validation is still due and need to be validated after the market retraces back and the prints a bearish candle.

The golden retracement area of 75-78.6% is in confluence with the resistance level and has the potential to have a sharp decline from this level.

The EMA 50 has a bearish trend and the market is below it. The market has a major gap to tap the EMA 50. Therefore, we will be looking towards the the short side without the EMA 50 retracement.

The RSI oscillator is at the bearish region already. What we can wait for is that RSI retests the 50 oscillator region and the market then starts to drop. If this retracement triggers while the market is at the resistance level with the confluence, we will have an added factor to confluence. 

EURCAD dumped

Jul 28 2022

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