Short trade Set-Up for EUR/CAD

Short trade Set-Up for EUR/CAD

Short-trade

PROs: 

 

  • Downtrend resumes from 19th March 2020
  • Recently (today) broke below bear flag pattern (A)
  • Holding below its 200, 50 & 20 period simple moving average on short time frames (1,2,3 & 4hr)
  • Lower highs & lower lows on the hourly time frame during this morning’s session
  • Broke below yesterday’s low

 

 CONs:

 

  •  Bearish short term sentiment amongst retail traders
  •  Good short term support below at 15210.4
  •  Higher swing lows generated from 30th April this year
REPORT:

A breakdown from the bear flag pattern (A) and support at 15220.5 was our sell signal for this currency cross. The recent rally from the February lows this year (14264.0) topped out at 15993.6 just 160 points shy of the 19th March highs 2018 (16153.4). A sharp pullback followed closing the gap at 15216.8 and has since made lower swing lows. Price action has begun to break down during today’s early morning session as we close into the apex of the bear flag pattern.

Bottomcatcher's Opinion:

Take a short position below support at 15220.0 (1) with a stop loss at 15235.4, and a target (take profit) at  15194.7.