EUR/CAD ? Still More Bearish Momentum Expected ?

3 min read
Adarwish

adarwish

Author

Hi traders,

EUR/CAD developed a bearish momentum during last week… It seems that this price action was developing 2 waves down as part of potential wave 5 and price is now building wave 3.

We will review different scenarios as the pair can either bounce for an uptrend or expand the bearish momentum within wave 3.

This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.

EUR/CAD Building Wave 3

As the below chart shows, the pair developed a bearish momentum… In my view, the pair developed 2 waves and now is ruing in wave 3 so I expect more for the downside. Price is now testing a critical 161.8% Fibonacci Expansion level which is the main target for a wave 3 and a bounce from that spot could confirm the start of a corrective wave 4.

For the moment I expect one more bearish move for wave 3… in the next paragraph, we will discuss this development by using SWAT software.

EUR/CAD SWAT CHART

Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bearish momentum, in my view, we need to trad wave 5 as wave 3 was missed …  Here are the main developments to consider:

  • Waiting for wave 3 to finish more likely as it was missed now.
  • Waiting the pullback of wave 4 and we will trade wave 5.
  • So pullback and continuation around Wizz level 2 are likely and Our main target is Wizz level 4.
  • I advise traders always to protect their profit or use trailing stops.

So in my view, traders should wait for the confirmation before trading this pair and look for sell opportunity only as it matches the expected wave.

Good trading,

Ahmed
Follow me on Twitter

.

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of