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.
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.
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:
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.
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